Arko eyes potential sale of c-store business
The company is reportedly studying a $2 billion deal for its retail operations as the 7th largest store operator in the United States.
Arko Corp. is reportedly planning to sell its convenience store business in a deal that could be valued around $2 billion.
As reported by Reuters, the company could potentially exit the c-store sector as sales have slowed down amidst an ambitious expansion strategy. The news agency specified that Arko has been working with investment bankers from Citigroup to value its retail business.
In the case of a buyout, the company will be left with its fuel distribution business, as it would divest one of the largest convenience store operations in the US. Currently, the firm supplies fuel over 1,800 independent dealer sites and close to 300 unmanned fleet fueling locations.
Convenience store operators alongside private equity firms have been mentioned as potential buyers, who have allegedly already submitted initial bids.
Based in Richmond, Arko was founded in 2003 with 169 stores and has grown through acquisitions to become the 7th largest convenience store chain in the United States. Its retail network encompasses approximately 2,950 locations, with close to 1,350 company-operated stores and approximately 1,600 dealer sites.
