BBNC’s approach to investment has always gone beyond the textbook definition. For one thing, our commitment to our shareholders is what drives us to strengthen our financial position: The greater our return on investment, the more benefits we can pass on to BBNC shareholders. In fact, our corporate values are built on a culture of mutual support and cooperation that goes back centuries.
Another marker of our investment strategy is our vested interest in this region. In a move that highlights our link with Bristol Bay, BBNC is excited to announce our acquisition of Bristol Alliance Fuels, LLC, as well as Bristol Express Fuels and certain assets of Bristol Commercial Properties, LLC. With the acquisition, which was completed July 31, 2015, BBNC will be the operator of a 2.95 million gallon tank farm, a marine fueling facility, and a retail gas station and convenience store in Dillingham.
Like many bold actions, this acquisition is the result of thoughtful planning. In 2011, BBNC’s Board of Directors adopted a strategic plan that included an initiative to allocate assets within the Bristol Bay region. With a capital investment of $35 million over a five-year period, BBNC could try to replicate the investment success we’d experienced elsewhere—right here, in our own backyard.
This initiative took on five strategic elements: We decided to focus on tourism, natural resources development, government contracting, regional fuels and private equity as areas of potential investment. Our first move in this direction was the acquisition of Mission Lodge, a fly-in fishing lodge in Aleknagik that marked BBNC’s foray into regional tourism. And the unveiling of the Bristol Bay Development Fund last year signaled an exciting investment in private equity within the region.
Through this acquisition, BBNC hopes to have a positive impact on the availability and cost of fuel in Bristol Bay. With our financial strength as a corporation, we can bring valuable resources to an already-strong enterprise. In turn, we see this as an opportunity for BBNC to help generate a raft of potential benefits to our shareholders—and to the region as a whole. Jim Baumgartner, the company’s operations manager and the brother of late founder, Robert Baumgartner, said that he believes BBNC “can do things out here to improve not just the financial outlook, but the quality of life in the area.”
Under BBNC’s ownership, Bristol Alliance Fuels will operate the tank farm, a marine fueling facility, and the Bristol Express retail gas station and convenience store, supplying diesel fuel, regular unleaded gasoline, aviation gasoline, Jet A and propane to commercial and residential customers in Dillingham and the surrounding area.
As a locally owned, family-run business, Bristol Alliance Fuels has long enjoyed being a vital part of Dillingham’s close-knit community. “We’ve always given a great level of service, “ said Baumgartner, “No doubt BBNC will continue that same level of service, since this is their home.”
For Bristol Alliance Fuels, the acquisition comes at a moment of great potential—for development, expansion and innovation. Relentless hard work and dedication have made the business what it is today—“the envy of many tank farms,” as Baumgartner said. BBNC is honored to carry the family’s hard work and success into the future, at the same time that we fulfill a commitment to our strategic vision. For Bristol Alliance Fuels, Baumgartner said, “It’s time for the next step. This just fits perfectly with BBNC.” We couldn’t agree more.
In addition to fuel delivery and sales, Bristol Alliance Fuels also provides fuel terminaling, docking, storage, and barge haul-out services. The company employees 20 people in Dillingham.