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Global Partners to buy gas stations, contracts in NYC, Maryland

Staff writer |
Global Partners LP has entered into an agreement with Capitol Petroleum Group to buy 97 Mobil- and Exxon-branded retail gas stations and 7 dealer supply contracts in New York City and Prince George's County, Maryland.

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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.

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