WALTHAM, Mass.--(BUSINESS WIRE)--Global Partners LP (NYSE: GLP) (“Global” or “the Partnership”) announced today that it has entered into an agreement with Capitol Petroleum Group (“CPG”) to purchase a portfolio of 97 Mobil- and Exxon-branded retail gas stations and seven dealer supply contracts in New York City and Prince George’s County, Maryland. The total consideration is approximately $156 million, subject to closing adjustments. The acquisition is expected to be accretive in the first full year of operations. Closing is expected in the second quarter of 2015, subject to customary closing conditions and regulatory approvals. Global plans to fund the acquisition with borrowings under its revolving credit facility.
“This acquisition complements and expands our existing asset footprint in two of the nation’s most attractive markets,” said Eric Slifka, the Partnership’s President and Chief Executive Officer. “The addition of the Capitol Petroleum locations enables us to leverage our existing operations and dealer relationships in the New York City and Maryland/D.C. markets while requiring limited incremental expense to grow the business.”
Joe Mamo, President and CEO of Capitol Petroleum Group, said, “We are pleased that a portion of our portfolio will be sold to Global Partners. Global has a proven track record and strong industry relationships.”
The acquisition includes 51 retail locations and seven dealer supply accounts in New York City and 46 retail locations in the Maryland/Washington, D.C. market. In 2014, these assets sold a total of approximately 125 million gallons of fuel. In New York 45 of the locations are dealer leased locations and six are commission agents, while in Maryland there are 41 dealer leased locations and five commission agents.
“Building on our recently acquired Maryland locations from Warren Equities, the Maryland portfolio will provide Global with a significant base from which to grow our operations in the mid-Atlantic region,” Slifka continued. “By establishing a more substantial presence in the Washington, D.C. market, Global will be well-positioned to expand our footprint efficiently through new-to-industry sites and additional tuck-in acquisitions.
“The addition of these highly desirable assets delivers a stable rental revenue stream and gross margin, enhancing the consistency of Global’s overall operating results while also driving higher volumes through our network. We are delighted to add these complementary assets to our portfolio,” Slifka concluded.
About Global Partners LP
A publicly traded master limited partnership, Global is a midstream logistics and marketing company that owns, controls or has access to one of the largest terminal networks of petroleum products and renewable fuels in the Northeast. Global also is one of the largest distributors of gasoline, distillates, residual oil and renewable fuels to wholesalers, retailers and commercial customers in New England and New York. The Partnership is a leader in the transportation of crude oil and other products by rail across its “virtual pipeline” from the mid-continental U.S. and Canada to the East and West Coasts for distribution to refiners and others. With nearly 1,500 locations, primarily in the Northeast, Global also is one of the largest independent owners, suppliers and operators of gasoline stations and convenience stores. Global is No. 146 in the Fortune 500 list of America’s largest corporations.
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