Par Petroleum LLC, a subsidiary of Par Pacific Holdings Inc., has entered into an agreement to acquire 33 Cenex Zip Trip convenience stores in eastern Washington and northwestern Idaho from CHS Inc. for approximately $70 million plus the agreed value of inventory at closing.
The Bonners Ferry Zip Trip is one of them.
The convenience stores are Par Pacific Holdings' first retail assets in the continental United States; it has more than 90 retail outlets in Hawaii.
CHS will continue to own and operate Cenex Zip Trip locations in Montana, Minnesota, Wyoming, North Dakota and South Dakota.
“CHS is grateful to the customers and employees who have been loyal to the Cenex Zip Trip locations in Washington and Idaho,” said Angie Olsonawski, CHS vice president of refined fuel operations and supplies. “We remain dedicated to the Cenex brand and are committed to strengthening customer relationships through our remaining 35 Cenex Zip Trip locations. CHS is confident that the locations under the new ownership will continue to provide the same level of high-quality service our customers expect from Cenex Zip Trip convenience stores.”
As part of the transaction, the parties will enter into a multiyear branded petroleum marketing agreement for the continued supply of Cenex-branded refined products to the Cenex Zip Trip stores. In addition, the parties also will enter into a multiyear supply agreement pursuant to which an affiliate of Par Pacific will supply refined products to CHS within the Rocky Mountain and Pacific Northwest markets.
“We are pleased to begin 2018 with a strategic acquisition to complement our Wyoming refining and logistics activities,” said William Pate, Par Pacific's president and CEO.
The companies said they expect the transaction to close in first-quarter 2018, subject to customary closing conditions and other approvals. All 33 Cenex Zip Trips will retain their name after the deal is closed.
CHS acquired 33 Zip Trip convenience stores in the Spokane area, owned in part by Jopo Inc. and Jo-By Enterprises LLC in 2008. Most of the 33 stores are located in metropolitan Spokane, with additional facilities in Clarkston, Washington, and in Lewiston, Coeur d'Alene, Grangeville, Moscow and Bonners Ferry, Idaho.
Par Pacific Holdings, Houston, Texas, owns, manages and maintains interests in energy and infrastructure businesses. Par Pacific owns and operates one of the largest energy infrastructure networks in Hawaii with a 94,000-barrel per day refinery, a logistics network supplying the major islands of the state and 91 retail locations. In Wyoming, Par Pacific owns a refinery and associated logistics network in a niche market.
CHS Inc., Inver Grove Heights, Minnesota, is a leading global agribusiness owned by farmers, ranchers and cooperatives across the United States. The company operates petroleum refineries/pipelines and manufactures, markets and distributes Cenex refined fuels, lubricants, propane and renewable-energy products through a network of more than 1,400 Cenex-branded retailers in 19 states, including Cenex Zip Trip.