Pri Mar to sell C-stores, oil company to two Michigan buyers

Pri Mar Petroleum in St. Joseph will pass into the business legacy of Southwest Michigan later this month, as the Marzke family sells the third-generation business to two Michigan companies with similar long track records of growth, service and family ownership, all centered historically on a traditional local oil company.

MoodyOnTheMarket.com spoke with Pri Mar President/CEO Kurt Marzke for an overview of the sale and how the company has grown and prospered for almost a century.

“97 years ago, Harry & Verna Priebe started in the oil and fuel business in the Twin Cities of Southwest Michigan. In 1972 Harry turned over leadership to his son-in-law, Richard Marzke, and Priebe Brothers Oil Company became PriMar Petroleum. Pri Mar was a pioneer, opening the first convenience store in SW Michigan in Stevensville, when competitors were still operating full service filling stations.

Over the years Pri Mar grew to be the largest enterprise of its kind in Berrien County. Now under its third generation of family leadership Pri Mar operates 13 ‘Pri Marts’ strategically located throughout Berrien, Cass & VanBuren counties.”

Later this month the Marzke family will sell Pri Mar Petroleum in two separate transactions to two Michigan buyers—one focusing on convenience stores and one on bulk fuels and lubricants for industrial, farm and residential customers.

The Pri Mart group of 13 convenience stores and gas stations will become part of the EZ Mart chain of nearly 200 stores, headquartered in Bear Lake, north of Manistee. Like Pri-Mart, EZ Marts operate under several gasoline brands and will continue to operate the Pri Mart stores under the current Amoco, BP & Citgo brands. EZ Marts offer expanded options of food, beverages and convenience items for busy commuters and consumers

EZ Marts are owned by Blarney Castle Oil Co. of Bear Lake, controlled by the McCarthy family, another multi-generational operator with history going back to 1933, the depths of the Depression, and growing ever since across Northern Michigan. EZ Mart stores will now stretch from Berrien County all the way to Munising in the Upper Peninsula and East to the Lansing Area.

The Pri Mar Petroleum fuel oil and lubricant business will be sold to Merle Boes, Inc. of Holland. Merle Boes started business in Holland in 1929, a year after Priebe began here. The Merle Boes firm is also a multi-generational family-owned business. They have focused on the fuel and lubricant segment, growing to be a major supplier across a wide swath of Michigan, from Holland all the way to Detroit. Merle Boes also operates a Holland-based convenience store chain known as ‘MB Markets’.

Pri Mar Petroleum currently operates three fuel & lubricant ‘bulk plants’, in St. Joseph, Niles and Bangor. The St. Joseph location at1207 Broad Street is in the midst of a neighborhood that is transitioning from industrial to residential and recreational use (The Box Factory and Lofts are next door). Marzke told us the future of the Broad Street property will be up to the new owners, the Marzke family will not retain ownership of the site:

“Merle Boes will be acquiring the property through the sale and will operate it as a bulk plant facility just as Pri Mar has done for many years. Merle Boes will re-evaluate all acquired properties over time and make changes based on their operations.”

Marzke said the sale is not expected to be disruptive to most employees of Pri Mar:

“…happy to report that all employees with the exception of a few are being hired by the buyers with our retail employees going to Blarney Castle (EZ Mart) and our fuel and lubricant employees going to Merle Boes.”

Marzke declined to put a dollar figure on the value of the deals.

Both of the Pri Mar transactions are expected to close before May 31.