Global Deal Phase One Done
Closes purchase of 148 stations from ExxonMobil; includes additional supply rights
WALTHAM, Mass. -- Global Partners LP, a major wholesale distributor of gasoline, distillates and residual oil in the New England states and New York, has 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 completed the purchase from Exxon Mobil Corp. 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 [image-nocss] in the same states. By the end of September, Global Partners expects to close on its purchase of the remaining assets in the agreement42 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 CEO 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.
Global Partners, a publicly traded master limited partnership based in Waltham, Mass., 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.