Transaction Includes Fuel Supply Rights at 31 Additional Mobil
Locations;
Partnership's Acquisition of 42 ExxonMobil Company-Operated Stations
Expected to Close by End of Third Quarter
WALTHAM, Mass., Sep 08, 2010 (BUSINESS WIRE) --
Global Partners LP (NYSE: GLP), one of the largest wholesale
distributors of gasoline, distillates and residual oil in the New
England states and New York, today announced the closing of the initial
phase of its purchase of Mobil-branded retail gas stations and supply
rights in Massachusetts, New Hampshire and Rhode Island.
The Partnership has today completed the purchase from Exxon Mobil
Corporation of 148 dealer-operated Mobil stations included in the
transaction, as well as gasoline and diesel supply rights for an
additional 31 Mobil stations owned and operated by independent Mobil
dealers in the same states. By the end of September, Global Partners
expects to close on its purchase of the remaining assets in the
agreement - 42 Mobil-branded stations directly operated by ExxonMobil.
All of the stations will continue to operate under the Mobil brand as
part of a long-term branding agreement between ExxonMobil and Global
Partners.
"The acquisition of these strategic assets contributes significant new
year-round income for Global Partners," said Eric Slifka, President and
Chief Executive Officer of Global Partners. "We believe that the
combination of our wholesale supply expertise, outstanding terminal
portfolio and unique system capabilities will enable us to generate
strong returns from this transaction, which adds vertical integration to
our transportation fuel supply business."
Of the 221 stations covered under the transaction, 179 are located in
Massachusetts, 22 in Rhode Island and 20 in New Hampshire. The stations
sold approximately 370 million gallons of gasoline and diesel fuel in
2009.
"ExxonMobil has built the premier brand and a superb dealer network in
these states, and we look forward to continuing the long tradition of
providing high-quality Mobil transportation fuels in these markets,"
Slifka said.
Global Partners is financing the acquisition with borrowings under its
new four-year, $1.15 billion senior secured credit facility.
About Global Partners LP
Global
Partners LP, a publicly traded master limited partnership based in
Waltham, Massachusetts, owns, controls or has access to one of the
largest terminal
networks of refined
petroleum products in the Northeast. The Partnership is one of the
largest wholesale distributors of gasoline,
distillates (such as home
heating oil, diesel
and kerosene) and residual
oil to wholesalers, retailers and commercial customers in the New
England states and New York. Global Partners LP, a FORTUNE 500(R) company,
trades on the New York Stock Exchange under the ticker symbol "GLP." For
additional information, please visit www.globalp.com.
Forward-looking Statements
Some of the information contained in this news release may contain
forward-looking statements. Forward-looking statements do not relate
strictly to historical or current facts and include, without limitation,
any statement that may project, indicate or imply future results,
events, performance or achievements, and may contain the words "may, "
"believe," "should," "could," "expect," "anticipate," "plan," "intend,"
"estimate," "foresee," "continue," "will likely result," or other
similar expressions. In addition, any statement made by Global Partners
LP's management concerning future financial performance (including
future revenues, earnings or growth rates), ongoing business strategies
or prospects and possible actions by Global Partners LP or its
subsidiaries are also forward-looking statements. Forward-looking
statements are not guarantees of performance. Although Global Partners
LP believes these forward-looking statements are based on reasonable
assumptions, statements made regarding future results are subject to a
number of assumptions, uncertainties and risks, many of which are beyond
the control of Global Partners LP, which may cause future results to be
materially different from the results stated or implied in this news
release. For additional information about risks and uncertainties that
could cause actual results to differ materially from forward-looking
statements, please refer to Global Partners LP's Annual Report on Form
10-K for the year ended December 31, 2009, Quarterly Report on Form 10-Q
for the period ended June 30, 2010 and subsequent filings the
Partnership makes with the Securities and Exchange Commission.
Developments in any of these areas could cause Global Partners LP's
results to differ materially from results that have been or may be
anticipated or projected. All forward-looking statements included in
this news release and all subsequent written or oral forward-looking
statements attributable to Global Partners LP or persons acting on its
behalf are expressly qualified in their entirety by these cautionary
statements. The forward-looking statements speak only as of the date of
this news release or, in the case of forward-looking statements,
contained in any document incorporated by reference, the date of such
document, and Global Partners LP expressly disclaims any obligation or
undertaking to update these statements to reflect any change in its
expectations or beliefs or any change in events, conditions or
circumstances on which any forward-looking statement is based.
SOURCE: Global Partners LP
Global Partners LP
Thomas J. Hollister, 781-894-8800
Chief Operating Officer and
Chief Financial Officer
or
Global Partners LP
Edward J. Faneuil, 781-894-8800
Executive Vice President,
General Counsel and Secretary