April 16, 2019

Cumberland Farms reportedly exploring sale

Photo | Grant Welker
Cumberland Farms has been owned by the Haseotes family for eight decades, but the company is reportedly considering a sale. It has renovated some stores into larger formats, including its location on East Main Street in Westborough.

Cumberland Farms may be exploring a sale that could end eight decades of the Westborough chain's ownership under the Haseotes family.

The chain has retained Bank of America for a possible sale, according to the gas station industry publication Oil Price Information Service. Cumberland Farms could command a high price thanks to interest from other retailers or even private equity, the publication said.

Cumberland Farms declined to comment to WBJ on Tuesday.

The company spent much of the last decade remaking most of its nearly 600 locations in the Northeast and Florida with larger footprints and brighter formats. It has begun, in a few instances, expanding store menus to include more elaborate sandwiches and espresso, with store layouts including kiosks and more space for customers to fix their drinks or add condiments.

Cumberland Farms got its start in 1939 when Vasilios and Aphrodite Haseotes, the grandparents of the company CEO, Ari Haseotes, bought a farm in Cumberland, R.I. They opened their first convenience store in in 1957 in Bellingham.

Today, the company ranks 15th nationally among the largest convenience store chains by number of locations by CSP, an industry news site. Oil Price Information Service ranks Cumberland Farms 30th by market share.

The company sold Gulf Oil in 2015 for a reported $1 billion.

Oil Price Information Service said Cumberland Farms could attract a stratospheric sales price, based on its projected EBITDA — earnings before interest, tax, depreciation and amortization — this year of $300 million. The company's desirable Northeast location may make it a major acquisition target, the site said.

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