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
or
Edward J. Faneuil, 781-894-8800
Executive
Vice President,
General Counsel and Secretary