Mountain Express' Growth Trajectory Reaches the Northeast
ACWORTH, Ga. — Mountain Express Oil Co. is expanding its footprint into the Northeast via a new acquisition.
The Georgia-based operator will pick up all of the retail and wholesale fuel assets of Texon Oil Co. The assets, all located in central and southern New Jersey and eastern Pennsylvania markets, consists of a portfolio of 24 Sunoco branded retail gas locations, 23 of which were fee owned. The facilities are a blend of auto service bays and convenience stores managed under a mostly company-operated or commission agent model.
The deal also includes two vacant parcels adjacent to operating sites with zoning approvals for large-format c-stores of 3,400 square feet and a wholesale supply-only account.
"We are thrilled to be the purchaser of Texon Oil and expand our footprint into New Jersey and eastern Pennsylvania," said Turjo Wadud, CEO of Mountain Express Oil Co. "The addition of these sites to [Mountain Express Oil's] network is further evidence of our ability to close transactions quickly, efficiently and without disruption."
Mountain Express recently completed a $205-million debt financing, with proceeds being allocated to refinance the company's existing credit facilities and supporting its growth objectives over the next several years.
Texon Oil Co. was founded in 1991when owners Perry Singh and Surinder (Sam) Hundal became Exxon franchisees at a single site in Stratford, N.J. The company grew into one of the largest Sunoco distributors in the New Jersey/eastern Pennsylvania region.
"We couldn't be more pleased with the full range of advisory services provided by fuels industry-veteran Ken Shriber, managing director of Petroleum Equity Group Ltd., who guided us and helped manage the entire process from start to finish. The decision to sell and exit the business is a difficult one, and we could not have achieved our objective without Ken's extensive knowledge, experience, and skill set," said Singh.
As part of the transaction, Balrup Roop Hundal will join the Mountain Express team as director of sales, where he will be tasked with transition support and acquiring additional assets as part of the company's ongoing growth across the country.
Jacklyn Fetbroyt of Kang Haggerty in Marlton, N.J., served as counsel to Texon Oil, and legal services were provided to Mountain Express by Jennifer Martin of JL Martin LLC in Atlanta.
The deal for Texon Oil is the second acquisition from Mountain Express in less than a month. In October, the company acquired New Orleans-based Brothers Food Mart, purchasing a majority of the operator’s stores and a license to use the name. The goal of the acquisition is to expand the brand into more southern markets, including North Carolina, Atlanta, Memphis and Dallas, while simultaneously growing Brothers Food Mart's Louisiana footprint. Mountain Express plans to add up to 100 additional Brothers sites in the next six months.
Acworth-based Mountain Express owns and/or controls more than 200 gas stations and provides fuel to more than 600 stations across the United States under several major oil and regional fuel brands. Looking ahead, the company is projected to own/control more than 300 stations, service nearly 800 locations, and operate nearly 100 c-stores by year-end 2021. Its geographic footprint covers 19 states.