Marathon Pe­tro­leum con­firms plan to buy Noco stores, ter­mi­nal

Noco to fo­cus on en­ergy dis­tri­bu­tion

The Buffalo News - - BUSINESS - By Matt Glynn NEWS BUSI­NESS RE­PORTER

Marathon Pe­tro­leum Corp.’s deal to ac­quire 33 Noco Ex­press stores also in­cludes a Noco fuel ter­mi­nal in the Town of Ton­awanda.

“This was an ex­tremely dif­fi­cult de­ci­sion for me and my brother Michael as the stores and the loyal cus­tomers we have served have been such a sig­nif­i­cant part of our fam­ily for al­most 40 years,” said James New­man, pres­i­dent of Noco En­ergy.

“How­ever, we have de­ter­mined that our fu­ture in re­main­ing a suc­cess­ful busi­ness in West­ern New York is to turn our fo­cus on our core strengths as an en­ergy dis­tri­bu­tion com­pany,” he said.

Marathon con­firmed the deal, first re­ported ear­lier this week, but did not dis­close the terms of the deal, which still needs reg­u­la­tory ap­proval. Marathon plans to con­vert the Noco stores to its Speed­way brand.

“We are ex­cited to con­tinue our growth into West­ern New York,” said Tony Ken­ney, Speed­way’s pres­i­dent. “The Noco Ex­press stores have been very well-man­aged and main­tained, and will com­ple­ment our ex­pand­ing pres­ence in this re­gion. We look for­ward to fur­ther bring­ing the Speed­way brand to even more con­sumers in the Buf­falo re­gion.”

Gary Heminger, Marathon Pe­tro­leum’s chair­man and CEO, said the Noco deal builds on its prior ac­qui­si­tions, in­clud­ing buy­ing 78 Ex­press Mart stores last year. That deal in­cluded 10 area gas sta­tions and con­ve­nience stores.

The Noco deal also helps Marathon max­i­mize its re­fin­ery use, by adding the Ton­awanda ter­mi­nal to its net­work, Heminger said. “The ter­mi­nal is well-po­si­tioned to re­ceive sup­ply from the Mid­west, Canada or the New York Har­bor via mul­ti­ple sup­ply routes, in­clud­ing pipe­line, truck, rail or wa­ter­borne ves­sels and de­liver our prod­ucts in this at­trac­tive new mar­ket.”

Marathon, a pub­licly traded com­pany based in Ohio, has a re­fin­ing ca­pac­ity of 3 mil­lion bar­rels of crude oil per day, across 16 re­finer­ies.

Noco will re­main in other parts of its en­ergy busi­ness fol­low­ing the sale of the con­ve­nience stores and ter­mi­nal. The com­pany will fo­cus on en­ergy dis­tri­bu­tion, and in the past sev­eral years has tran­si­tioned into ar­eas in­clud­ing nat­u­ral gas and elec­tric power, re­new­able en­er­gies, and en­ergy ef­fi­ciency pro­grams and ser­vices.

The Ton­awanda ter­mi­nal is lo­cated along the Ni­a­gara River, near the Grand Is­land bridges lead­ing to and from Ton­awanda.

Buf­falo News file photo

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