ARKO Petroleum to acquire U.S. Petroleum Partners
The acquisition brings more than 400 wholesale locations into ARKO's network.
ARKO Petroleum Corp. has agreed to acquire the business of U.S. Petroleum Partners, a vertically integrated fuel supply and distribution platform serving the Great Lakes region. The deal is expected to add roughly 280 million gallons of annual fuel volume.
The acquisition brings more than 400 wholesale locations into ARKO's network, expanding it to over 2,500 sites, along with two fuel terminals in Michigan and Ohio connected to the Buckeye Pipeline system, and a transportation fleet that moves more than 80% of USPP's distributed volumes.
"This transaction represents APC's first potential acquisition since completing APC's IPO earlier this year, and reflects the disciplined growth strategy we outlined to investors at that time," said Arie Kotler, Chairman, President and CEO of ARKO Petroleum Corp.
The consideration includes approximately $205 million in cash plus inventory costs, alongside $30 million in APC Class A common stock held in escrow and tied to EBITDA-based performance targets over the first four quarters post-closing. The cash portion will be funded through the company's existing credit lines.
