Global Partners Closes Buy of 148 Mobil Stations
WALTHAM, Mass. -- Global Partners LP, a gasoline distributor covering New England and New York, completed its previously announced purchase of 148 dealer-operated Mobil gas stations and convenience stores located in Massachusetts, New Hampshire and Rhode Island from Exxon Mobil Corp.
"The acquisition of these strategic assets contributes significant new year-round income for Global Partners," Eric Slifka, president and CEO of Global Partners, said in a statement. "We believe that the combination of our wholesale supply expertise, outstanding terminal portfolio and unique system capabilities will enable us to generate strong returns from this transaction, which adds vertical integration to our transportation fuel supply business."
The deal, which includes supply rights for those locations, also includes gasoline and diesel supply rights for an additional 31 Mobil stations owned and operated by independent Mobil dealers in the same states, according to Global Partners.
In addition, Global Partners expects to close on its purchase of the remaining assets in the original agreement -- 42 Mobil-branded stations directly operated by ExxonMobil -- by the end of this month.
All of the stations involved will continue to operate under the Mobil brand as part of a long-term branding agreement between ExxonMobil and Global Partners, the company stated. Of the 221 stations covered in the deal, 179 are located in Massachusetts, 22 are based in Rhode Island and 20 are located in New Hampshire. The stations sold approximately 370 million gallons of gasoline and diesel fuel in 2009, according to the company.
"ExxonMobil has built the premier brand and a superb dealer network in these states, and we look forward to continuing the long tradition of providing high-quality Mobil transportation fuels in these markets," Slifka added.
Global Partners is financing the acquisition with borrowings under its new four-year, $1.15 billion senior secured credit facility.