WALTHAM, Mass. -- Global Partners LP has outsourced the day-to-day management and operations of 221 locations to Alliance Energy LLC. Global Partners, one of the largest wholesale distributors of gasoline, distillates and residual oil in the New England states and New York, announced on Friday that it has completed the final phase of its acquisition of Mobil-branded retail gas stations and fuel supply rights in Massachusetts, New Hampshire and Rhode Island.
The partnership closed on the purchase of 42 Mobil-branded stations directly operated by Irving, Texas-based Exxon [image-nocss] Mobil Corp. Earlier this month, the partnership completed the acquisition of 148 dealer-operated Mobil stations, as well as gasoline and diesel supply rights for an additional 31 Mobil stations owned and operated by independent Mobil dealers.
Alliance Energy, based in Branford, Conn., distributes motor fuels in seven states from Maine to Pennsylvania. It currently operates more than 150 retail sites; its total supply of more than 400 million gallons of fuel annually goes to about 565 locations. Fuel brands include Shell, Mobil, Exxon, Gulf, Getty and CITGO, as well as the licensed Global proprietary brand. The c-stores at these locations include Fast Freddies, Mr. Mikes and Mobil On the Run, among others identities. Alliance is approximately 95% owned by members of the Slifka family, who also own the general partner of the partnership.
"Today marks an exciting new chapter for Global Partners," said Eric Slifka, president and CEO. "We are pleased to have completed this transaction ahead of schedule. The acquisition of these premier stations and supply rights creates significant new year-round income for the partnership, increasing our overall earnings power."
Of the 221 stations involved in 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. 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.
Global Partners financed the acquisition with borrowings under its four-year, $1.15 billion senior secured credit facility.
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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.
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