Boyett Petroleum, a family-owned independent fuel supplier headquartered in Modesto, has purchased fuel distribution contracts for 90 additional gas stations in a deal worth more than $5 million.
The expansion will boost Boyett’s distribution network to more than 500 stations in California and Nevada.
Stanislaus County drivers may be familiar with the Boyett name because of the seven Cruisers gas stations it owns locally. “But the wholesale side of our business is much bigger than our retail side,” said Ken Berns, Boyett’s vice president of wholesale marketing.
Berns said the company distributes gasoline to about 136 Valero and Beacon stations, 55 stations under the 76 brand (formerly Union 76), more than 50 KwikServ stations, about a dozen Arco stations and several hundred independent gas stations.
Boyett also sells diesel to a large segment of California’s agricultural community.
The recently closed deal with the MCW Energy Group Limited was the most significant acquisition in Boyett’s 74-year history.
“Most of our growth has been organic,” Berns said, explaining that the company primarily has expanded by adding customers rather than by buying other distribution networks. “We always see ourselves as trying to grow.”
Berns said the fuel distribution industry has been consolidating, and Boyett has become one of California’s largest wholesalers.
The deal with MCW Energy enabled Boyett to buy distribution contracts to sell fuel to 90 additional retailers, which primarily are 76 and Valero stations in Southern California.
The initial purchase price was $5 million, but an additional amount based on the gross profits from those contracts will be due this April.
Because of this expansion, Berns said Boyett expects to sell nearly 400 million gallons of fuel this year, compared with about 300 million in 2014.
But the extra stations will not mean more jobs in Modesto. Berns said the company’s 170 current employees will be able to handle the expanded fuel sales.
Boyett has had a presence in the Central Valley since 1940. Carl Boyett is the company’s chief executive officer, and his son, Dale Boyett, is the company’s president.