RICHMOND, Va. -- Matrix Capital Markets Group Inc. said it has sold 42 of Ports Petroleum Co.'s Fuel Mart convenience stores.
The units were sold to multiple buyers, comprised of national retailers, regional jobbers and individuals. As reported in CSP Daily News in October, Alimentation Couche-Tard Inc.'s Mac's Convenience Stores LLC (dba Circle K) purchased seven stores in Ohio, mostly in the Cleveland area. Other select buyers of the sold to date included Magness Oil Co.(6); Giant Eagle (4); Campbell Oil Co. (3); and Love's Travel Stops & Country [image-nocss] Stores (2).
The remaining units were sold to various acquirers and closings are ongoing, said Richmond, Va.-based Matrix, which served as the exclusive financial advisor to Wooster, Ohio-based Ports. Tom Kelso, managing director and head of the Energy & Multi-Site Retail Group at Matrix, managed the transaction.
Matrix said it continues to accept offers on eight remaining Fuel Mart and Tobacco Town units. The Fuel Marts are located in Youngstown, Ohio; Cambridge, Ohio; Ashland, Ohio (with Tobacco Town); Commerce, Ga.; Madison, Ga.; Spencer, S.D. (with Subway); and Schuyler, Neb. A standalone Tobacco Town is located in Brunswick, Ohio.
Ports decided to exit the retailing business. We spent the last couple years trying to acquire stores, and we just felt that the prices for properties we've been trying to acquire were in excess of what we were willing to pay, president Michael Ports told CSP Daily News in June, when the auction was announced. At one point we just said, If we can't be a buyer, maybe we should be a seller'.
Ports still operates its wholesale operations, which serve commercial, government and retail locations in 15 states with gasoline, heating oil and diesel fuel.
Under Couche-Tard 's purchase agreement, it would buy the land and buildings for six locations and would lease the other one. According to a confidentiality agreement between the parties, the purchase price cannot be disclosed, the company said, but was to be paid using internal cash flow. The seven units would add sales of approximately $35 million (U.S.) to Couche-Tard's revenues and contribute to its earnings on an annualized basis, the Laval, Quebec company has said.
We are pleased with this opportunity, which allows us to complement the network expansion plans in the Midwest, said Michel Bernard, vice president of operations for the Midwest for Mac's. Consistent with our development strategy, we selected these seven stores based on the following criteria: prime locations, potential for growth and quality of people. Under our operation model and with the efficiency of our marketing programs, these seven sites would contribute to improve profitability of the Midwest Division. Subsequent to this transaction, our network in the Midwest Division would include a total of 499 stores. These sites are located within the areas of our existing Circle K stores and would eventually be operated under the Circle K banner.
Information on the remaining Ports units is available at www.matrixcapitalonline.com by clicking on the Ports Midwest Auction link, or by contacting Spencer Cavalier (410) 752-3833, ext. 2, spcavalier@matrixcmg.com; or Matt Murphy (804) 780-0060, ext. 333, mmurphy@matrixcmg.com.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.