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NASHVILLE -- Florida-based Diamond Oil Co. has expanded into Tennessee with the successful bid of $18.1 million for 28 Kwik Sak convenience stores formerly owned by Purvi Petroleum.
"This acquisition is another step in Diamond's growth strategy," Jay Patel, CEO of Diamond Oil said. "We are actively seeking acquisitions where our fuel distribution services and in-store sales expertise can quickly impact underperforming stores."
Two years ago, the Nashville-based Purvi filed for bankruptcy protection. The stores, originally part of Marathon Ashland Petroleum, were sold to Purvi in 2002, according to Gary Murphey, the chief restructuring officer and trustee of the stores.
After Purvi acquired the stores, "We restructured the operations and immediately commenced turning a profit," Murphey continued. "Although we paid off millions of debt and there will likely be a distribution to unsecured creditors, it was clear that additional investment was needed to take these stores to the next level."
"That's where Diamond comes in," Patel continued. "With the squeezing of fuel profits, our focus has been on maximizing inside sales. With fuel margins so thin that you have more profit in a cup of coffee than 5 gallons of gas, it doesn’t take long to figure out where your priorities should be."