Mergers & Acquisitions

Island Energy Services to license Texaco brand from Chevron Corp.

Island Energy Services to license Texaco brand from Chevron Corp.
Photo courtesy of Chris Yarzab.

After completing its acquisition last week of Chevron Corp.’s Hawaiian assets, Island Energy Services LLC announced that it will license the Texaco brand from Chevron and will rebrand five Chevron service stations on Kauai in early 2017. The purchase agreement between Chevron Corp. and Island Energy Services LLC, a subsidiary of One Rock Capital Partners LP, a New York-based private equity fund, was announced in April.

Chevron acquired the Texaco brand after it purchased Texaco Corp. in October 2000, in a deal valued at USD45 billion, creating the second largest oil company in the United States.

The assets that were acquired by Island Energy for an undisclosed amount include a 54,000 barrel-per-day (bpd) oil refinery in Kapolei, on the island of Oahu, four product distribution terminals on Oahu, Maui, Kauai and Hawaii Island, pipeline distribution systems and other related downstream assets in Hawaii.

“Chevron the company does not permit entities or people to operate under Chevron unless they have direct
control over that asset,” said Albert Chee, vice president of retail, marketing and community relations for Island Energy. “The next best thing, if you want to be part of the Chevron brand, is to license their Texaco brand.”

“All the features of the Chevron brand today, including the fuel additive Techron, the loyalty program we have with Safeway, the credit card, all of that is going to remain the same,” Chee said. “We felt that was very important to serve that customer base in the best way we could going forward.”

“Island Energy … is going to continue to run the business going forward,” he said. “We intend to grow it and expand it.”

Most of Chevron’s Hawaii-based team have accepted offers from Island Energy to remain with the company, Chee said, including Jon Mauer, a 28-year Chevron executive and current Hawaii refinery manager, who has been appointed president and chief executive officer of Island Energy.

“This is an exciting opportunity to build on the strong foundation that Chevron established in Hawaii,” Mauer
said.

“As we move forward under the new Island Energy name, the same dedicated professionals responsible for decades of safe, reliable and environmentally responsible operations in Hawaii will continue to deliver high-quality gasoline and other refined products and services to meet the Islands’ energy and transportation needs,” Mauer said.

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