Global Partners to Acquire Capitol Petroleum Portfolio for $156M
WALTHAM, Mass. — Global Partners LP has reached an acquisition agreement with Capitol Petroleum Group. The $156-million deal includes 97 Mobil- and Exxon-branded retail gas stations and seven dealer supply contracts in New York City and Prince George's County, Md.
"This acquisition complements and expands our existing asset footprint in two of the nation's most attractive markets," said Eric Slifka, Global Partners President and CEO. "The addition of the Capitol Petroleum locations enables us to leverage our existing operations and dealer relationships in the New York City and Maryland/D.C. markets while requiring limited incremental expense to grow the business."
The acquisition is expected to be accretive in the first full year of operation. Closing is expected in the second quarter of 2015. Global plans to fund the acquisition with borrowings under its revolving credit facility. The Raymond James Convenience Store & Fuel Products Distribution Investment Banking Team served as advisor to Capitol Petroleum Group.
"We are pleased that a portion of our portfolio will be sold to Global Partners. Global has a proven track record and strong industry relationships," said Joe Mamo, president and CEO of Capitol Petroleum Group.
The acquisition includes 51 retail locations and seven dealer supply accounts in New York City and 46 retail locations in the Maryland/Washington, D.C. market. In 2014, these assets sold a total of approximately 125 million gallons of fuel. In New York, 45 of the locations are dealer leased locations and six are commission agents, while in Maryland there are 41 dealer leased locations and five commission agents.
"Building on our recently acquired Maryland locations from Warren Equities, the Maryland portfolio will provide Global with a significant base from which to grow our operations in the Mid-Atlantic region," Slifka said. "By establishing a more substantial presence in the Washington, D.C. market, Global will be well-positioned to expand our footprint efficiently through new-to-industry sites and additional tuck-in acquisitions.
"The addition of these highly desirable assets delivers a stable rental revenue stream and gross margin, enhancing the consistency of Global's overall operating results while also driving higher volumes through our network. We are delighted to add these complementary assets to our portfolio," he added.
Waltham-based Global Partners LP is a publicly traded master limited partnership. With nearly 1,500 locations, primarily in the Northeast, Global also is one of the largest independent owners, suppliers and operators of gasoline stations and convenience stores.