Global Partners Closes Alliance Energy Deal
WALTHAM, Mass. -- A little more than three months after signing a definitive agreement to acquire 100 percent of Alliance Energy LLP's membership interests, Global Partners has dotted all the Is and crossed the Ts.
Alliance Energy is a gasoline distributor and operator of gas stations and convenience stores in the Northeast. The closing of the deal moves all its holdings in Connecticut, Maine, New Jersey, New York, Pennsylvania and Vermont to Global Partner's portfolio.
The acquisition includes approximately 540 gas stations; Alliance owns or has long-term leases on approximately 253 of the sites and has supply contracts for the remaining stations. The majority of the Alliance-operated sites include attached c-stores and feature co-branding arrangements with national retailers such as Dunkin' Donuts and Subway. The gas stations operate under a number of brands, including Mobil, Exxon, Shell, Sunoco, Gulf and CITGO, CSNews Online previously reported.
In conjunction with the closing, Global Partners issued 5,850,000 limited partner units and assumed long-term debt, subject to post-closing adjustments, of approximately $180 million. Also, Alliance President Andrew Slifka joined Global Partners as president of the partnership's service station, c-store and related supply division. In addition, he will become a member of the board of directors of Global GP LLC in the second quarter of this year.
News of this acquisition first made headlines in mid-November. At that time, the transaction's enterprise value was estimated to be $296 million, based on Global Partners' closing price of $19.89 per unit on Nov. 18.
Approximately 95 percent of Alliance is owned by members of the Slifka family, which also owns Global GP LLC, general partner of Global Partners.
"The acquisition of Alliance significantly enhances the value of the partnership," Eric Slifka, president and CEO of Global Partners, said in November. "Building on the success of our 2010 acquisition of the Mobil assets, this transaction creates additional vertical integration between our supply, terminaling, wholesale business and our expanding portfolio of gas station sites. Alliance is a premier, multi-brand, independent gasoline station and convenience store operator in the Northeast. We know Alliance and its business extremely well, as they currently serve as the management company for Global's Mobil assets. We view the company as an ideal fit for Global -- strategically, operationally, geographically and culturally."