FRANKLIN, Tenn. -- Delek US Holdings Inc. has announced that MAPCO Express Inc., a wholly owned subsidiary, has completed the previously reported purchase of 90 retail fuel and convenience stores from Calfee Co. of Dalton Inc. and affiliated companies, for approximately $57 million excluding inventory.
The company said it is continuing to work toward completing the purchase of the remaining 17 stores that are subject to the parties' definitive purchase and sale agreement. In the meantime, the company will operate the remaining stores pursuant to an operating [image-nocss] and management agreement between the parties. The company expects to complete the purchase of the remaining stores for a purchase price of approximately $8 million during the current quarter after necessary closing conditions are satisfied.
The stores operate under the brand Favorite Markets, and they are located primarily in eastern Tennessee and northern Georgia. During the previous three fiscal years ending April 30, the 107 stores produced average sales of approximately $242 million, average merchandise sales of $87 million and average fuel sales of 83 million gallons, Delek US said.
Uzi Yemin, president and CEO of Delek US, said, We are pleased to announce the substantial completion of our third acquisition since our initial public offering in May 2006. With this acquisition, we increase our stores in operation to nearly 500, which represents a strategic milestone. Together with the 43 Fast Petroleum stores acquired last summer, we believe the Favorite Markets stores establish MAPCO as a market leader in the Chattanooga market.
Franklin, Tenn.-based Delek US is a diversified energy business focused on petroleum refining, marketing and supply and retail marketing. The refining segment operates an independent refinery in Tyler, Texas. The marketing and supply segment markets refined products through its terminals in Abilene, Texas, and San Angelo, Texas, as well as other third-party terminals. The retail segment markets gasoline, diesel and other refined petroleum products and convenience merchandise through a network of company-operated retail fuel and c-stores operated under the MAPCO Express, MAPCO Mart, East Coast, Favorite Markets and Discount Food Mart brand names.
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