Hess Takes the Cape
Published in CSP Daily News
Christy's of Cape Cod sells 11 locations to integrated oil company
NEW YORK -- Hess Corp., New York, has acquired 11 convenience stores with gasoline in New England from Christy's of Cape Cod LLC. As reported in a CSP Daily News Flash, having closed on the deal this past Friday, Hess intends to rebrand the sites and hold a grand opening in the spring. Hess will also be taking the Buzzards Bay store recently permitted by Christy's after many years in the permit process, added a report by Cape Cod Today.
"Christy's is one of the premier gasoline retailers on Cape Cod, and they share Hess' commitment to providing customers [image-nocss] with exceptional service and value," a Hess spokesperson told CSP Daily News. "We see this as a strong fit with the Hess brand promise, and we are delighted to add these Christy's sites to the Hess retail portfolio."
The stores have been closed while Hess renovates the sites to its format, said the newspaper.
Christy's of Cap Cod owner Christy Mihos told the newspaper, "We are happy that Hess will bring its buying power with over 1,400 stores on the East Coast to our Cape Cod Customers and the fact that Hess drills for oil, refines it and sells it at much lower prices to the customer [than an independent dealer]."
Most of Christy's personnel will move to Hess, according to Mihos. Christy himself will continue to permit, develop and operate new stores in Dennis and Chatham, which have not as yet been converted to the Christy's format. Further, Christy's will continue to work to open the location at the Bourne Rotary at the old Texaco station near the CanalSide project, said the report.
The Christy's chain, based in Hyannis, Mass., once included 144 stores throughout Eastern Massachusetts, but in May 1998, he and his brother sold 132 of them to 7-Eleven. The total purchase price was $33 million, of which Christy received 50%, Christy's told CSP Daily News. At that time, Christy Mihos repurchased 8 stores at a 40% premium from 7-Eleven following the completion of the transaction.
The price tag for the current sale has been rumored at more than $25 million, or about $2 million for each location--$1 million for each Christy station and $1 million for each piece of real estate on average, the report said.Hess already has several locations on Cape Cod.
Meanwhile, Mihos is planning to run of governor of Massachusetts in 2010.