WALTHAM, Mass. — Global Partners LP completed its acquisition of Warren Equities Inc. The $387-million deal has been on the table since October.
The agreement gives Global Partners 147 company-operated Xtra Mart convenience stores and related fuel operations, 53 commission agent locations and fuel supply rights for approximately 320 dealers. The properties are spread throughout Massachusetts, Connecticut, Maine, New Hampshire, New York, Rhode Island, New Jersey, Pennsylvania, Maryland and Virginia.
In addition to its proprietary Xtra Fuels brand, Warren Equities markets fuel through several major brands, including Exxon, Mobil, Shell, BP, Sunoco, CITGO, Gulf and Valero, according to Richmond, Va.-based Matrix Capital Markets Group Inc., which advised on the transaction.
Warren Equities operated the assets through its subsidiaries Warex Terminals Corp. Inc. and Drake Petroleum Co. Inc. For the trailing 12 months, ended Feb. 28, 2014, the company sold 521 million gallons of motor fuels.
Waltham-based Global Partners acquired Providence, R.I.-based Warren Equities from The Warren Alpert Foundation. The partnership expects the acquisition to be accretive in the first full year of operations and to generate EBITDA of between $50 million and $60 million in the second full year of operations.
"By increasing our footprint in the Northeast and broadening our presence to the Mid-Atlantic, the Warren platform provides significant opportunities to drive additional volumes and profitability through our network," said Eric Slifka, Global Partners' president and CEO. "The completion of this transaction further strengthens our growing retail business with its stable rental income and recurring convenience store margins. We look forward to welcoming the Warren Equities employees to our team."
Global Partners boasts a portfolio of approximately 800 owned or supplied gas stations under a variety of brands, including Mobil, Exxon, Shell, Sunoco, Gulf, CITGO and Global. These stations are operated by its Alliance Energy retail division.
Matrix Private Equities Inc., an affiliate of Matrix Capital Markets Group, provided merger and acquisition advisory services to Warren Equities and The Warren Alpert Foundation. The transaction was co-managed by Thomas Kelso, managing director and head of the Downstream Energy and Retail Group, and Cedric Fortemps, managing director. Vance Saunders, director, and Stephen Lynch, associate, also advised.
Thomas P. Rohman and Bryce D. Jewett III of McGuireWoods LLP in Richmond provided legal counsel to the foundation and the company.