Griffith Consumers Co. of Cheverly has acquired two independent petroleum distributors, bringing to 14 the number of such acquisitions in the past two years.
Company officials would not disclose the purchase prices for Hutzler Oil Co. of Martinsburg, W.Va., and Marfax Fuel Oil Co. of Alexandria. Griffith paid $15 million in May for Carl King Inc., the largest retailer of home heating oil and gasoline in Delaware.
Hutzler Oil sold more than 1 million gallons of gasoline last year, mainly through two service stations, and delivered 500,000 gallons of home heating oil, kerosene and diesel fuel. Hutzler had revenue of $1.5 million in the year ended March 31.
Marfax sold about 120,000 gallons of heating oil and kerosene, for revenue of about $96,000, according to Griffith officials.
Vice President Henry C. Jefferies said the purchases are part of Griffith's growth strategy, which includes geographic expansion and absorption of smaller heating oil businesses.
The company also plans to diversify into related energy fields. "We really have been primarily a heating oil company until last year," Jefferies said .
The King purchase was designed to boost profits and to provide a buffer against the seasonal nature of heating oil demands. Heating oil demand is highest in winter, while King's retail gasoline business peaks during the summer as people vacation at the Eastern Shore, Jefferies said.
Griffith reported net income of $1.5 million on revenue of $40.3 million for the year ended June 30, 1986. King reported profits of $1.4 million on $56 million revenue for the year ended Sept. 30, 1986.
A group of investors and company managers acquired Griffith from Atlantic Richfield Co. for $14.4 million in July 1985. By the following autumn, Griffith had spent $1.6 million to buy seven small heating oil distributors. The company went public in November 1986.