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MAPCO Officially Has a New Owner

BRENTWOOD, Tenn. — Delek US Holdings Inc. has closed its sale of MAPCO Express Inc. and certain related affiliated companies to a U.S. subsidiary of Compañía de Petróleos de Chile COPEC S.A. (COPEC). The deal was worth $535 million plus MAPCO's estimated cash on hand and working capital adjustment, totaling approximately $16.3 million.

"With the completion of this transaction, we have unlocked the value of our retail assets and improved our financial flexibility," stated Delek Chairman, President and CEO Uzi Yemin. "We have gained a partner in retail fuel sales and will continue to supply certain locations under an 18-month fuel supply agreement."

At closing, $156 million of debt associated with MAPCO was repaid, along with a debt prepayment fee of $13.4 million and an estimated $4.6 million of transaction related costs, according to Delek. Net cash proceeds before taxes related to the transaction are $377.3 million.

"By continuing to utilize our wholesale business and our space on the Colonial pipeline system to serve these retail locations as we have in the past, our consolidated RINs position should not be significantly changed by this transaction," Yemin said. "This financial flexibility can be used as we evaluate strategic opportunities to create long term value for our shareholders."

MAPCO has 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.

COPEC is one of the largest companies in Chile, operating in fuel and lubricants distribution and convenience stores. COPEC has an existing industry presence with the largest c-store network in Chile and approximately 53 percent of Chile's 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.

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