Corporate Backgrounder

Company Name: The Cumberland Gulf Group


Principals:

  • Lily H. Bentas, CEO, The Cumberland Gulf Group
  • Ari Haseotes, President and Group Chief Operating Officer, The Cumberland Gulf Group
  • Ron Sabia, EVP, President & COO, Gulf Oil Limited Partnership
  • Mark Howard, EVP, CLO and CAO, General Counsel, and Secretary, The Cumberland Gulf Group
  • Howard Rosenstein, SVP & CFO, The Cumberland Gulf Group
  • John McMahon, SVP & Chief Human Resources Officer, The Cumberland Gulf Group
  • Dave Banks, Chief Information Officer, The Cumberland Gulf Group
  • Dino DeThomas, Chief Real Estate Officer and Senior Vice President of Real Estate and Facility Support Services, The Cumberland Gulf Group

Office Location (City/State): 100 Crossing Boulevard, Framingham, MA 01702

Market Area of Current Operations: Massachusetts, Rhode Island, Vermont, New Hampshire, Maine, Connecticut, New York, New Jersey, Pennsylvania, Delaware, and Florida. In addition to the states listed above, since January of 2010, Gulf Oil has been expanding into a national brand across the United States marketing branded and unbranded petroleum products.

Total Business Portfolio (Brands / Volumes):

The Cumberland Gulf Group serves approximately 2,400 stations within its geographic area. These stations are served mainly through its Gulf brand, but also through the Mobil, Exxon, and Sunoco brands as well as its proprietary Wave brand and unbranded stations. These stations sell over 2.8 billion gallons of motor fuels annually.

Company Background

The Cumberland Gulf Group is a strategic amalgamation of Cumberland Farms, Inc. ("Cumberland Farms" or the "Company") and Gulf Oil Limited Partnership ("Gulf Oil") focused on leveraging the combined management experience and operational expertise of the two entities to create economic efficiencies, facilitate continued dynamic growth and generate synergistic value propositions. Cumberland Farms is the eighth largest independent convenience store operator by units in the U.S. (according to 2013 Convenience Store News Top-100 report) with a market leading position throughout the Northeast as well as a significant presence in the Mid-Atlantic region and Florida. Cumberland Farms is parent company to Gulf Oil Limited Partnership, one of the largest wholesalers of refined petroleum products in the Northeast and Mid-Atlantic. In 2013, the Cumberland Group generated roughly $17 billion of sales through a footprint of 570 convenience store locations operated under the well-known Cumberland Farms banner and through the operations of its subsidiary Gulf Oil. The Cumberland Group is a privately held, family-owned and managed company that includes real estate and mid-stream gasoline operations.

History

Cumberland Farms was founded in 1939 in Cumberland, Rhode Island by Vasilios and Aphrodite Haseotes with the purchase of a 110-acre farm for the purpose of milk production. Since those early years, Cumberland Farms has evolved into a vertically integrated owner and operator of convenience stores and gas stations in 11 states across the East Coast. By the late 1960's, the Company had become a well-known retailer throughout the Northeast. In the early 1970's, the Company was one of the pioneers in building the concept of a combination retail store and gas station, understanding the basic convenience needs of its customers. As a result, the Company installed its first gas facility at a Cumberland Farms convenience store in 1971.

By the late 1970's, Cumberland Farms became the second largest convenience store chain in the United States, and the largest privately owned convenience store chain with over 1,200 stores, 400 gas units and nearly 10,000 employees. Although the Company has primarily grown organically, Cumberland Farms also entered into certain strategic acquisitions to facilitate further growth. In 1986, the Company acquired the Northeast assets of Gulf Oil, a wholesaler of refined petroleum products, from Chevron. In this transaction, Cumberland Farms purchased in excess of 500 gas stations, 20 refined petroleum terminals, and a perpetual license to Gulf trademarks and trade names in 11 states. This acquisition transformed the Company into a vertically integrated convenience store and petroleum provider. In 1993, Cumberland Farms entered into a joint venture with Catamount Petroleum LP and transferred the terminals and distribution assets to the newly formed entity, Gulf Oil Limited Partnership.

In 2003, the Company purchased certain Exxon branded gas station assets in New York and the Northeast from ConocoPhillips. The acquisition included approximately 200 gas stations, the petroleum supply agreements for those stations, and the rights to use the Exxon trademark and trade name in 7 states until early 2010.

In June of 2005, the Company implemented its long-term strategy with respect to Gulf Oil and exercised its option to reacquire the remaining partnership interest from Catamount Petroleum LP. Subsequent to the transaction, a new management team was established at Gulf Oil. This team has spent the last several years enhancing the brand image and building the corporate infrastructure required to support a robust growth platform.

In January 2010, the Company purchased the "Gulf" brand from Chevron and began an aggressive marketing campaign to make the Gulf name a national presence once again.

Gulf Oil distributes motor fuels through a network of 2,400 Gulf branded gas stations and service stations, as well as heating oil, diesel fuel and kerosene. The Petroleum Distribution Division (the "PD Division") is responsible for the delivery of petroleum products to all of the Cumberland Group's Company Operated Stores, Contract and Assured Dealers. Annually, the PD Division coordinates the delivery (delivered with its own proprietary transports or by third party haulers) of 1.2 billion gallons (125,000 deliveries) of petroleum products. The PD Division has almost 72 petroleum transports strategically domiciled at 10 truck terminals spread throughout Gulf Oil's market area in the Northeast. Gulf Oil distributes approximately 1.7 billion gallons in branded gasoline per year and has a leasehold interest in and operates 11 retail facilities located along the Massachusetts Turnpike through which it distributes approximately 47 million gallons per year of Gulf branded gasoline. The branded franchise business involves Gulf Oil distributing branded products to the approximately 2,300 branded stations that are primarily branded under the Gulf name.

Gulf, through Great Island Energy, also distributes approximately 1.0 billion gallons per year of unbranded product to its wholesale distributors and retailers and earns revenue storing and distributing product ("throughputing") for third parties through its proprietary terminals.

Today, Cumberland Farms is the largest convenience store and petroleum marketer in the Northeast and the Company proudly maintains the Haseotes' original vision of delivering the highest level of convenience and customer satisfaction at attractive prices.