Global Partners Announces Agreement to Acquire Retail Portfolio from Capitol Petroleum Group for $156 Million

April 14, 2015

Transaction Expands Global’s Gasoline Station Assets in New York City and Maryland / Washington, D.C. Regions

WALTHAM, Mass.--(BUSINESS WIRE)--Apr. 14, 2015-- 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.”

Transaction Summary

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.

Forward-looking Statements

This news release may contain forward-looking statements. Forward-looking statements 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,” “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.

Although Global Partners LP believes these forward-looking statements are reasonable as and when made, there may be events in the future that Global Partners LP is not able to predict accurately or control, and there can be no assurance that future developments affecting Global Partners LP’s business will be those that it anticipates.

For additional information about risks and uncertainties that could cause actual results to differ materially from the expectations Global Partners LP describes in its forward-looking statements, please refer to Global Partners LP’s Annual Report on Form 10-K and subsequent filings the Partnership makes with the Securities and Exchange Commission.

Readers are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date on which they are made. Global Partners LP expressly disclaims any obligation or undertaking to update forward-looking 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
Daphne H. Foster, 781-894-8800
Chief Financial Officer
Edward J. Faneuil, 781-894-8800
Executive Vice President,
General Counsel and Secretary