Boyett Petroleum, a Modesto-based company that sells and distributes fuel to gas stations in California and northern Nevada, bought the rights to distribute fuel to 24 gas stations in the Bay Area, foothills and Sacramento.
Boyett will distribute to 12 76 stations and 12 Valero and Beacon stations that formerly contracted with one of Boyett's competitors, Toms Sierra Co. of Roseville.
Boyett Chief Executive Officer Carl Boyett would not disclose the purchase price, but said Tuesday the company has been working on the deal for a year and a half.
"We don't normally acquire other businesses. But, in this case, we wanted the wholesale part," he said.
Boyett Petroleum markets more than 20 million gallons of gas a month. The new stations will add 3 million gallons of business.
When fuel cost is high, sales drop. This deal will increase sales for Boyett Petroleum without increasing the company's payroll, said Boyett Petroleum President Dale Boyett.
"We think it's a good long-term deal for us," he said.
With the new distribution accounts, Boyett Petroleum has 110 branded accounts in total.
"While our growth has traditionally been and will continue to be organic, the Sierra Energy accounts provided us an opportunity to strengthen ourselves geographically with two of our largest suppliers," Carl Boyett said of ConocoPhillips and Valero Energy Corporation.
In addition to Boyett Petroleum's wholesale business, it operates 37 company retail locations under the names Boyett and Kwik Serv. And it supplies stations without contracts, and some farm and trucking businesses.
Bee staff writer Eve Hightower can be reached at firstname.lastname@example.org or 578-2382.