ARKO acquires 150 c-stores from Transit Energy Group for $375M
The deal also involves fuel supply rights to 200 dealers, commercial, government, and industrial customers, as well as TEG’s bulk storage, distribution and transportation assets.
GPM Investments, a subsidiary of ARKO, will acquire a number of assets from Transit Energy Group for $375 million, including 150 convenience stores. The deal also involves fuel supply rights to approximately 200 dealers, commercial, government, and industrial customers, as well as TEG’s bulk storage, distribution and transportation assets, all in the Southeastern United States.
This acquisition is part of ARKO’s strategic focus on growth and generating long-term stockholder value with its convenience, wholesale, and fleet fueling platform. The purchase price is approximately $375 million plus the value of inventory, of which $50 million is deferred and payable in two annual payments of $25 million.
TEG, currently owned by ECP, is a large convenience store and wholesale fuel company in the southeast United States. TEG has its own growth pipeline and a record of growth in Alabama, Arkansas, Louisiana, Mississippi, Missouri, North Carolina, South Carolina and Tennessee, operating under the Flash Market banner and several other brands.
“We believe this significant, accretive acquisition will drive strategic growth with the addition of an exceptional team, well-known stores and other assets to our family of community brands. A deal of this magnitude complements our core capabilities and will create long-term value for ARKO stockholders and valuable synergies given our existing footprint and proven strategy of adding value to strong local brands while keeping jobs in place,” said Arie Kotler, President and CEO of ARKO.
This acquisition is expected to increase ARKO’s store count to over 1,530 convenience stores, expand the company’s retail footprint to Alabama and Mississippi, and grow the family of community brands in other regions. Including retail and wholesale it is expected that the acquisition will add approximately 285 million gallons of fuel, the majority branded, to the approximately two billion gallons the company currently sells annually.
