Global Partners & Mirabito Seal 30-Store Purchase Deal
WALTHAM, Mass. — Global Partners LP, through a wholly owned subsidiary, completed its previously announced sale of 30 non-strategic gasoline stations and convenience stores in New York and Pennsylvania to Mirabito Holdings Inc. for approximately $40 million.
The transaction includes long-term supply contracts for branded and unbranded gasoline and other petroleum products.
“The Mirabito transaction reflects our ongoing focus on monetizing non-strategic retail sites to further strengthen our balance sheet and provide additional flexibility to invest in assets that are fundamental to our growth objectives,” said Global Partners President and CEO Eric Slifka. “At the same time, establishing long-term supply agreements with the purchaser allows us to continue to earn a supply margin.”
Global Partners stated it used $28 million of the proceeds it received from Binghamton, N.Y.-based Mirabito to pay down debt under the master limited partnership’s revolving credit facility. The balance of the proceeds remain available to pursue “like-kind exchange transactions to acquire retail gasoline assets.”
As CSNews Online reported, Global Partners first announced the asset sale on May 26. Global Partners acquired the 30 c-stores, branded under the Xtra Mart banner, when it purchased Warren Equities Inc. in January 2015.
Slifka previously stated Global Partners plans to sell a total of 125 c-stores by the end of this calendar year.
Waltham, Mass.-based Global Partners LP has approximately 1,500 convenience stores and gas stations, primarily in the Northeast. It is also is one of the largest independent owners, suppliers and operators of gasoline stations and c-stores.