CrossAmerica to acquire fueling assets of Community Service Stations
The company has announced the pending transaction for the fuel supply portfolio in the Greater Boston area that adds up to 75 million gallons across supply contracts.
CrossAmerica Partners LP has announced that it has entered into a definitive agreement to acquire certain assets of Community Service Stations. The assets consist of wholesale fuel supply contracts to 39 dealer owned locations, 34 subjobber accounts and two commission locations.
The supply contracts include approximately 75 million gallons of fuel annually through such fuel brands as Exxon Mobil, Shell, Gulf and others.
“We are excited to acquire these attractive assets from one of the leading wholesale distributors in the Boston area. This acquisition expands our fuels business in the New England market with new dealers and strengthens our relationship with several of our major fuel supplier partners,” said Charles Nifong, President and CEO of CrossAmerica Partners.
The acquisition is subject to customary conditions to closing, which CrossAmerica currently expects to be finalised by the fourth quarter of 2022. It is anticipated that the acquisition will be financed with cash on hand and/or undrawn capacity under the company revolving credit facility. The Partnership expects the acquisition to be immediately accretive to distributable cash flow to limited partners.
The terms of the transaction were approved by the board of directors of the general partner of CrossAmerica.
