MAPCO Express Trades Hands in $535M Deal
NASHVILLE, Tenn. — MAPCO Express Inc. has found a new owner. Delek U.S. Holdings Inc. has signed a definitive agreement to sell the retail network to Compañía de Petróleos de Chile COPEC S.A. (COPEC).
The deal carries a $535-million price tag and covers 100-percent interest in MAPCO and certain affiliated companies.
The transaction has received unanimous approval of both boards of directors and is subject to customary regulatory and closing conditions. It is expected to close by the end of the year and will be funded by cash on hand.
MAPCO is a convenience store chain with 348 corporate stores operating primarily in Tennessee, Alabama and Georgia, with additional presence in Arkansas, Virginia, Kentucky and Mississippi. MAPCO operates company stores under the banners MAPCO Express, MAPCO Mart, East Coast, Fast Food and Fuel, Favorite Markets, Delta Express and Discount Food Mart.
In addition, MAPCO provides fuel to 142 dealer locations as of July 31, and provides logistical fuel transportation to MAPCO and third parties with approximately 50 tractors and trailers.
"The sale of MAPCO to COPEC allows Delek to simultaneously unlock the value of these assets and gain a continuing competitive partner in retail fuel sales," said Uzi Yemin, chairman, president, and CEO of Delek. "We believe this transaction will provide Delek with increased financial flexibility as we explore future opportunities and creates an exciting opportunity for the MAPCO brand and its employees as it becomes part of COPEC's growth strategy."
COPEC is one of the largest companies in Chile, operating in fuel and lubricants distribution and convenience stores. COPEC has an existing presence in the convenience stores with the largest convenience store network in Chile and approximately 53 percent of Chilean gasoline market share with 626 company and dealer operated service stations, 82 Pronto-branded convenience stores and 220 Punto-branded convenience stores.
In addition, COPEC has a majority ownership stake (58.9 percent) in Organizacion Terpel S.A., which is based in Bogota, Colombia, and accounts for approximately 45 percent of Colombia's fuel market share. Terpel has 1,949 Terpel-branded gas stations in Colombia and 233 stores in Panama, Ecuador, Peru and Mexico under store brands Altoque and Deuna selling Terpel-branded fuel.
COPEC will generally retain MAPCO's current retail team to provide for a seamless entrance into the U.S. c-store market.
"The acquisition of MAPCO represents an important step for COPEC's entry into the U.S. convenience store market, which has been identified as a key strategic growth opportunity," said Lorenzo Gamuri, CEO of COPEC. "MAPCO's assets are located in a geographic zone with interesting demographic attributes and with the size for a proper competitive operation in the U.S. market. After buying into the control of Organización Terpel in 2010, this is the second significant step to transform COPEC into a broader company in the fuel retail and convenience store market."
Delek's exclusive financial advisor was RBC Capital Markets LLC. COPEC's financial advisor was Raymond James & Associates Inc. and legal advisor was Simpson Thacher & Bartlett LLP.