Heas Energy Grows Its Store Base in Central Virginia

RICHMOND, Va. — Heas Energy Services LLC tapped Petroleum Capital and Real Estate LLC (PetroCapRE) to grow its footprint in central Virginia.

The company entered into a definitive agreement to acquire the long-term leasehold and business interest in 10 gas station and convenience store sites. The 10-store chain was previously operated by a local ExxonMobil petroleum distributor and c-store operator.

The deal consists of eight company-operated c-stores that operate under the Express Lane banner and two locations that operate under the commission agent class of trade.

"This transaction would likely not have happened without PetroCapRE's extensive experience in facilitating and closing [merger and acquisition] transactions, especially in turbulent markets like we face today," said Shiv Patel, CEO of Heas Energy. "I particularly valued PetroCapRE's underwriting process, professional guidance in structuring an agreement that fit my long-term business plans and developing strategies that lowered the overall cost of the transaction."

All of the 10 sites historically sold ExxonMobil branded motor fuel products, but each site was converted to the 76 motor fuel brand shortly after the transaction closed.

Heas Energy plans to quickly upgrade all of the network's motor fuel dispensing facilities, reimage the sites to the 76 brand and convert a portion of the c-store chain to the 7-Eleven Inc. brand over the next several years.

PetroCapRE exclusively represented Heas Energy and provided professional assistance in the initial financial due diligence process, acquisition modeling, lease and supply agreement negotiations and procurement of the other capital required to close the overall transaction.

"We are excited that our firm could support Shiv Patel throughout this transaction process," said John Flippen, managing director and principal of PetroCapRE. "This was a great opportunity for our client to establish a new long-term supply relationship with Motiva Enterprises LLC and acquire the control of 10 premium real estate sites during an uncertain period of time in the [convenience and gas] industry."

Heas Energy's Patel is also the chief operating officer and a stakeholder in Sun Fuel LLC, a Sunoco and ExxonMobil branded wholesale petroleum distributor that operates an independently branded c-store chain, Star Express, and is a Subway, Wendy's and Huddle House franchisee. All of Sun Fuel's retail sites and supply-only customers are in Virginia, South Carolina or North Carolina.

PetroCapRE is recognized as a national leader in providing buy-side, sell-side, refinancing and capital restructuring services for clients exclusively in the downstream multi-site retail and wholesale petroleum industry. Since forming the company in 2009, it has completed closings totaling more than $2.4 billion.