Global Partners Buys 190 Mobil Sites

Waltham, Mass.-based Global Partners LP signed agreements with Exxon Mobil Corp. to purchase all 190 Mobil-branded retail gas stations and convenience stores in Massachusetts, Rhode Island and New Hampshire, for an estimated $200 million.

The agreement also includes the right to supply Mobil-branded fuel to the stations and to an additional 31 Mobil-branded locations owned and operated by independent dealers in those states.

Of the total 221 stations, 179 are located in Massachusetts, 22 in Rhode Island and 20 in New Hampshire. All of the stations will continue to operate under the Mobil brand as part of a long-term agreement, according to the Massachusetts- based company.

"In recent years, Global Partners has undertaken a number of strategic acquisitions and strategic projects that have enabled us to emphasize gas and other year-round transportation fuels," Eric Slifka, Global Partners president and CEO, said in a conference call with investors when the deal was announced, adding the acquisition is "first and foremost a purchase that enables us to generate strong and steady volume by supplying transportation fuels to these 221 locations through our supply and terminaling system."

Regarding the retail locations, he said: "These Mobil sites are highly visible with high traffic counts, and situated on virtually non-replicable, prime locations."

Of the 190 stations being acquired by Global Partners, 42 are company operated and 148 are dealer operated. Global Partners conservatively plans to spend $6 million in maintenance and capital expenditures per year on the sites.

Additionally, Global Partners plans to negotiate a contract for the management of the company-operated sites and the dealer relationships with Alliance Energy LLC, which is approximately 95-percent owned by members of the Slifka family. Alliance supplies gasoline and diesel to more than 500 service stations throughout New England, New York and Pennsylvania, and operates more than 30 locations under the Fast Freddie's, Mr. Mike's and Mobil On The Run banners, according to the company's Web site.

The purchase is subject to customary regulatory approvals and other closing conditions, and Global Partners expects the deal to be complete by the end of 2010.