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Price Oil Co. Sold to Birmingham Company

Posted on: Thursday, 20 April 2006, 21:00 CDT

By Deborah Willoughby, Montgomery Advertiser, Ala.

Apr. 20--A Birmingham-based company has acquired Montgomery-based Price Oil Co. The purchase price was not disclosed.

Moore Oil Co., which operates from Nashville, Tenn., to the Florida Panhandle, is a closely held family oil distributor founded by Ronald J. Moore, said his son, Joey Moore, the vice president for marketing.

The deal takes Moore Oil from 105 gas station-convenience stores to 230 and to expected annual sales of $500 million.

"It's a perfect fit for us, and we are extremely proud to welcome the Price family of dealers and employees into ours," Moore said.

Moore did not know the number of employees affected by the purchase.

"We are retaining the in-house employees," he said. "The stores that they had been running are currently dark and will be reopening soon. They are currently in the process of being transferred."

Price Oil was founded in Andalusia in 1963 by Fred Price. The company moved to Montgomery in 1991. Price Oil filed for Chapter 11 bankruptcy protection in December.

The Northwest Florida Daily News reported April 10 that the Price Oil celebrity golf fundraiser in Destin, Fla., was canceled this year because of Price Oil's bankruptcy.

Price Oil experienced financial problems after it expanded into more convenience stores in 2005, the Florida newspaper reported.

Arleen A. Alexander, president of the Alabama Petroleum & Convenience Marketers Association, said it has been a tough few years for people in her industry, although she didn't have any information about Price Oil's situation.

"Rising crude oil prices and all of the other things, between hurricanes and events over in the Mideast and the increasing demand for crude oil from countries like China, have kept gasoline and crude oil prices up, and the marketers and retailers have been crunched," Alexander said.

As gasoline prices reach toward $3 a gallon, convenience stores see a loss in income from inside sales of sodas and snacks.

"What happens is that people have just so much disposable income. They are likely to purchase gasoline and not make the in-store sales they did before," she said.

Moore said the acquisition reflects a national trend.

"Small oil companies are merging their assets for synergy," he said.

Higher gasoline prices aren't good news for companies like Moore Oil.

"We would like for the price to go down. When it goes up, it hurts the store's profit margins because street prices never react as fast as the wholesale prices," he said. "One thing people could do to help is use their gas card. It's free to them and free to us, but many bank cards charge 3 percent."

"The local guys aren't making the money on it," Moore said. "Folks, please don't be mad at us. We're doing the best we can to hold on."

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Copyright (c) 2006, Montgomery Advertiser, Ala.

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Source: Montgomery Advertiser

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