GPM Completes 'Highly Strategic Acquisition' of Empire Petroleum Partners

RICHMOND, Va. — GPM Investments LLC and its parent company Arko Holdings Ltd. completed the acquisition of Dallas-based Empire Petroleum Partners' fuel distribution and retail locations on Oct. 7. The deal brings GPM's total site count to approximately 3,000 locations across 33 states.

The transaction meaningfully increases GPM's scale and diversifies its business mix while significantly increasing its cash flow through increased exposure to a highly ratable, consistent wholesale fuel distribution business, the company said.

"The completion of this highly strategic acquisition is an important milestone for Arko as we move forward with our business combination with Haymaker. This acquisition provides meaningful benefits through scale while increasing our competitiveness as an acquirer of choice," stated Arie Kotler, CEO of Arko and GPM. "With the closing of this transaction, we expect to double our annual fuel distribution to over 2 billion gallons on an annualized basis, while capturing significant synergies to drive increased profitability to the combined company."

Combined with other strategic initiatives — including GPM's continued core acquisition strategy as well as its planned aggressive remodeling program and organic sales growth opportunities — the transaction strengthens the company's confidence in its ability to drive significant growth and market share gains going forward, Kotler added.

Arko Holdings Ltd. and Empire Petroleum agreed to the Federal Trade Commission's requirement that they divest multiple sites in four states in order to complete the transaction, as Convenience Store News previously reported.

The acquisition closed as Arko's pending business combination with Haymaker Acquisition Corp. II, a special purpose acquisition corporation, which is expected to close in the fourth quarter of 2020 and result in the combined company becoming publicly-listed on the NASDAQ stock exchange under the ticker ARKO.

"We could not be more excited about the closing of this transformative transaction for ARKO/GPM," said Steven Heyer, chairman and CEO of Haymaker Acquisition Corp. II. "It is emblematic of the tremendous opportunity set in front of the company, as well as the focused and disciplined approach that Arie and team take to executing and closing acquisitions. We believe the addition of Empire will generate meaningful value to the combined company going forward."

The acquired Empire wholesale fuel distribution business complements GPM's retail business and will serve as an additional vehicle for future acquisitions and organic growth, according to the company. Following the closing, the acquisition is expected to increase GPM's scale, further diversify the company's existing cash flow, and augment GPM's strategic flexibility to rationalize sites between its retail and wholesale business.

GPM will operate its wholesale division out of Empire's Dallas offices and will transition Empire's team to GPM.

Headquartered in Israel, Arko operates in the United States through its Richmond- based subsidiaries GPM Petroleum LLC and GPM Southeast LLC.