Is MAPCO Going Out Of Business? Curious about MAPCO and wondering if it’s going out of business. Let’s find out! We’ll explore the latest updates and information to see what’s happening with MAPCO.
So, buckle up, and let’s dive into the world of MAPCO and its business journey.
A while ago, Delek U.S. Holdings Inc. sold MAPCO Express Inc. and some related companies to a company named Compañía de Petróleos de Chile COPEC S.A. COPEC is a big company in Chile dealing with fuel, lubricants, and convenience stores. They own a lot of gas stations and convenience stores in Chile. Besides, they also have a big share in a company called Organizacion Terpel S.A., which is based in Colombia.
Because of the sale, Delek considered MAPCO’s assets as “discontinued operations” in their reports. This meant that the money they made from MAPCO’s operations in the third quarter of 2016 was $11 million, including $4.5 million for truck and trailer wear and tear. After taking out taxes, they made $6 million.
This happened in 2016, and since then, COPEC has been in charge of MAPCO. If you wonder, “Is MAPCO going out of business?” the answer is NO. MAPCO is not closing down; it just got a new owner in 2016. Its owner has changed recently this year.
The sale of MAPCO to COPEC was expected to be finished in the same month it was announced, according to Delek U.S. Holdings Inc.’s third-quarter earnings call. Back in August 2016, Delek shared that they had a deal with COPEC to sell MAPCO for a big amount, $535 million. Before going into the main topic, let’s find out what MAPCO is.
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What Is MAPCO?
MAPCO Inc. is a chain of convenience stores and gas stations with locations throughout the southern United States. The company was founded in 1960. The man behind this company is Robert E. Thomas. He used the earnings from his gas pipeline business to finance an entrance into coal and oil production. Then, it shifted downstream to become a sizable refiner and marketer of oil and gas. MAPCO has retained a foothold in all of these areas, with oil refining and marketing supplying the bulk of revenue. However, pipeline operations still generate exceptionally large amounts of cash for use in further investments and upkeep.
MAPCO has 348 stores in places like:
- Tennessee
- Alabama
- Georgia
- Arkansas
- Virginia
- Kentucky
- Mississippi and more
They operate under different names like:
- MAPCO Express
- MAPCO Mart
- East Coast
- Fast Food
- Fuel
- Favorite Markets
- Delta Express
- Discount Food Mart
MAPCO also provides fuel to 142 dealer locations and transports energy to MAPCO and others using about 50 trucks and trailers. The sale needed to follow regular rules and conditions set by the authorities.
What Is The History Of MAPCO?
In 1960, a man named Robert E. Thomas started a company called MAPCO Inc. It began by building a special pipeline called Mid-America to carry a type of gas called propane from Texas to New York. Propane is used for heating homes in the Midwest. Before this pipeline, propane had to be sent by train, which was slower and more expensive.
Robert Thomas got the idea for the pipeline when he was in charge of a railroad company. He heard about a plan to build a propane pipeline along the railroad route. But the railroad couldn’t afford it. So, in 1958, Robert and some friends created MAPCO Inc. to build and run the Mid-America pipeline. They got $71 million from different sources, including a big insurance company, and started the business in 1960.
This pipeline was the first in the U.S. made specifically for carrying propane. To make sure it would be successful, MAPCO got promises from 13 companies that they would use the pipeline. This guaranteed that there would be enough propane to keep the channel working well and pay off the money borrowed to build it.
Building a pipeline is not easy. However, Robert Thomas made sure MAPCO had the right customers and enough money to do it. Once the channel started working, MAPCO made a profit right away and kept making money. They became successful because pipelines, even though they have rules to follow, can make a lot of cash and be profitable. MAPCO’s main source of money became refining and selling oil and gas. But they still kept their hands in other energy areas.
Is MAPCO Getting Bought Out?
Yes, MAPCO is getting bought out. Alimentation Couche-Tard and Majors Management finished buying MAPCO Express and its staff from the old owner, Compañía de Petróleos de Chile S.A. (COPEC). They told everyone about the deal on April 27, 2023.
Couche-Tard has 112 places where you can buy gas and snacks, plus some extra land and trucks. They said these places are nice and in good spots. The chief operating officer at Couche-Tard, Alex Miller, is happy to have the new stores. Besides, he has new team members. He wants to bring the Circle K experience to more people in Georgia, Tennessee, Alabama, and Kentucky.
Majors Management has 192 MAPCO stores in a bunch of states. They also got the part of MAPCO that sells gas to other stores, their loyalty program, brand, and other things in their brain. The president of Majors, Ben Smith, thinks this is good for their plans to grow. He wants to keep MAPCO’s good service and quality for customers.
Couche-Tard has lots of stores in many countries, and Majors is based in Georgia. They both do gas and snacks. Majors work with big gas brands like Marathon, BP, Shell, and more. In the last three years, Majors bought 18 stores in 14 states.
Why Did COPEC Sell MAPCO?
Copec decided to sell MAPCO Express in the U.S. to focus more on its work in Latin America. They want to make their business there stronger and improve their new projects in that part of the world. The sale is not final yet; it depends on certain things, like getting the okay from the right authorities.
In simple terms, Copec is selling a company called MAPCO Express to another company called Circle K Stores. The price for this deal is about $725 million, and it might change a bit based on some regular adjustments. Circle K Stores is a part of Alimentation Couche-Tard. The two people, Marvin Hewatt and Dustin Hewatt, who own a lot of Majors Management, are also involved.
Copec thinks this sale will make a positive difference in its business. It has earned around $100 million before taxes. The deal should be done by the end of this year if everything goes as planned. Copec wants to focus more on its work in Latin America and make its business there even better. The sale still needs permission from the right authorities before it can happen.
MAPCO’s New Easy Checkout: Grab, Scan, and Go
Mapco just opened its second store in Nashville, Tennessee, where you can grab what you want and leave without waiting in line to pay. This cool technology is called Grabango. It uses cameras on the ceiling to see what shoppers pick up. When they’re done, they scan a code on their app, and the payment happens automatically.
The CEO of Mapco, Frederic Chaveyriat, says more and more people like this fast and easy way to check out.
Other stores are also trying this kind of technology, especially in places where lines are usually long, like stadiums and airports. Amazon and Zippin are doing this in sports venues. Mapco is not alone; Circle K, GetGo Cafe + Market, and B.P. are trying it, too.
But sometimes, there are problems. Some stores that tried this had to close, like Loop Neighborhood Markets and some Amazon Go stores.
Mapco has been focusing on technology lately. In June, they improved their mobile app with rewards, deals, and a game. Majors Management bought Mapco in April, and they sold some of the stores to Circle K. Mapco has over 300 locations in six states.
Who Are The Competitors Of MAPCO?
Mapco has some companies that it competes with, like Magna, Cooper Standard, Cummins, Lear Corporation, and UNO Minda. There are actually 2,600 companies competing with Mapco! Let’s take a look at a few of its top competitors:
- Magna – This company is in Aurora and has been around since 1957. It’s a big company that anyone can buy shares in.
- Lear Corporation – Based in Southfield, it started in 1917 and is a big company in which anyone can buy shares.
- UNO Minda – In Gurgaon, it’s been around since 1958 and is also a big company that anyone can buy shares in.
- Z.F. – Based in Friedrichshafen, it started in 1915 and got some money from investors.
- Delphi Technologies – In Auburn Hills, it started in 1994 and was bought by another company.
- MAHLE – Based in Stuttgart, it started in 1920 and got some money from investors.
- American Axle & Manufacturing – In Detroit since 1917, it’s a big company that anyone can buy shares in.
- Endurance Technologies – This company is in Aurangabad and started in 1985. It’s a big company that anyone can buy shares in.
- Cooper Standard – Based in Novi, it started in 1960 and was bought by another company.
- Cummins – This company is in Columbus and has been around since 1919. It’s also a big company that anyone can buy shares in.
Conclusion
In conclusion, MAPCO isn’t going out of business. Despite changes in ownership and various developments, MAPCO remains active. It is serving communities with its convenience stores and fuel stations. The company’s focus on technology, like checkout-free stores, indicates a commitment to staying modern and customer-friendly. With a history dating back to 1960 and continuous adaptation to industry trends, MAPCO is still very much in the game.
So, for those who rely on MAPCO for snacks, fuel, and convenience, you can rest assured – MAPCO is here to stay!