Wilson Fuel Co. to add 20 Esso stations to its retail chain

Wilson Fuel Company Limited is buying 20 Essostations in Nova Scotiaand Newfoundland as Imperial Oil moves to sell its retail sites across Canada.

The company already operates 50 stations under theEssobanner and the latest additions 11 in Halifax and nine in St. John's will also remain under theEssoname, said James Wilson, chief financial officer of Wilson Fuel.

Imperial Oil hasannounced it isselling off 497 retail stations across Canada tofive fueldistributors for $2.8 billion.

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"We are the [Esso] retail branded distributor in Atlantic Canada already," Wilsonsaid Wednesday.

The sites will continue to operate under the Esso brand, with Esso products, and continue with all the Esso promotional and loyalty programs, he said.

"Itre-establishes this partnership that we've had for decades with Imperial. We've been buying product from Imperial for 50 years."

Opportunity for growth

Wilsons Gas Stops operatesservice stations inNova Scotia, New Brunswick, Newfoundland and Prince Edward Island and distributes gasoline to 200 dealers across Atlantic Canada. The company is run by a handful of cousins, includingSteve Wilson, Dave Wilson and Ian Wilson.

Other Esso buyers include:

• Alimentation Couche-Tard is set to buy 279 stations in Ontarioand Quebec for nearly $1.69 billion.
• Parkland Fuel Corporation says it will buy 17 Esso stationsin Saskatchewan and Manitoba,along with Imperial's On the Run/Marche Express convenience storefranchise system.
• 7-Eleven Canada Inc. is buying sites in Alberta andBritish Columbia andHarnoisGroupepetrolieris also buyinga number ofsites in Quebec.

James Wilson would not say what his company paid for the stations.The acquisitions are not part of a large expansion plan but Wilson Fuelis keeping an eye on opportunities for growth, he said.

"We're an eighth-generation family business, we're always growing and looking to grow. In 1989, we weren't in the gasoline business and now we have 80 corporate sites and 150 dealers, so we always look at strategic opportunities to grow," he said.

"There's nothing right in front of us other than this right now but we're always looking for the next thing."

Competitive market place

That could include expanding outside the Atlantic region, he said.

"If the right opportunity was there, we'd definitely take it. There's nothing right now but we'd definitely look at it."

Irving continues to be the biggest competitor in the retail gas sector for Wilson Fuel, which also hasa home-heating fuel business, asecurity business andan HVAC-equipment manufacturing operation.

"It is a competitive marketplace. We've been in the business for decades," Wilson said."We feel very comfortable where we are. We have strong brands and good products to sell, great employees, things are good."

Roughly two-thirds of the 1,700 Esso stations across Canada havebeen operated by wholesalers for about 15 years, with the remainderof the Esso stations now set to follow the same model.

Imperial, whichis majority owned by U.S. energy giantExxonMobil Corp., said the sales are expected to close by the end of2016.