Par Petroleum Expands Its Hawaii Holdings | ConvenienceStoreNews
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    Par Petroleum Expands Its Hawaii Holdings

    HONOLULU -- Par Petroleum Corp. inked a deal to acquire Koko'oha Investments Inc., the parent company of Mid Pac Petroleum LLC, for approximately $107 million.

    Mid Pac Petroleum is the exclusive licensee of the 76 brand in Hawaii, and operates or distributes through more than 80 retail sites and four terminals across the state. Par Petroleum is the parent company of Hawaii Independent Energy LLC (HEI).

    "Acquiring Mid Pac will provide a unique expansion opportunity for our Hawaii business. The access to additional retail sites will provide synergies by increasing on-island sales of our refined products, optimizing distribution costs and enhancing crude slate flexibility," said William Monteleone, CEO of Par Petroleum. "In addition, Mid Pac's fee-owned real estate portfolio, consisting of retail locations, terminals and office space, provides excellent underlying asset value."

    According to Peter Coxon, Par's chief operating officer, Hawaii will benefit from the added local gasoline and diesel sales for the HEI refinery in Kapolei.

    "The increased local sales will enable HIE to better optimize its operations and production slate, providing Hawaii with stronger on-island refining capability, high-quality manufacturing jobs, and a more secure energy supply," Coxon said.

    Jim Yates, president and CEO of Mid Pac Petroleum, is familiar with refining in Hawaii, having previously served as an executive with a former owner of the Kapolei facility, BHP Hawaii.

    "The joining of HIE and Mid Pac creates a strong, vertically integrated Hawaii-based refining and marketing company, which provides stability for our employees and dealers and strengthens an important energy source for Hawaii," Yates said. "This is a homecoming of sorts for me, and I'm pleased that Par Petroleum does not foresee making any staffing changes as they welcome Mid Pac employees to their family of companies."

    The two companies are still working out the details of the transition. Par Petroleum anticipates finalizing the transaction sometime in the third quarter of 2014, subject to regulatory and other approvals.

    "It's also encouraging to be a part of merging two companies with such deep local roots and such long-standing commitments to investing in Hawaii and supporting local nonprofits. This transaction will ensure that those commitments can continue," Yates added.

    In September 2013, Par Petroleum acquired Tesoro Hawaii LLC, which included the larger of the state's two petroleum refineries, related product storage and distribution assets, and 31 Tesoro-branded gasoline stations on Oahu, Hawaii Island and Maui.

    Houston-based Par Petroleum Corp. manages and maintains interests in a variety of energy-related assets. Through its subsidiaries, Par owns and operates a 94,000-barrel-per-day refinery located in Hawaii on the island of Oahu. This refinery, together with substantial storage capacity, a 27-mile pipeline system, terminals and retail outlets, provides a substantial portion of the energy demands of the Aloha State.

    Hawaii-based Mid Pac Petroleum is a petroleum marketer and distributor with 150 employees. It distributes gasoline and diesel through more than 80 retail locations throughout the state. Mid Pac also owns and operates petroleum product terminals and trucking operations in Hawaii, and is the first petroleum retailer on Oahu to offer biodiesel to customers.

    Hawaii Independent Energy is the leading provider of transportation fuels on the islands and supplies 31 Tesoro-branded retail stations on Oahu, Maui and the Big Island. Its refinery in Kapolei is the larger of the state's two oil refineries.

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