PMG Triples Footprint in New Jersey

Purchases 117 retail sites, supply agreements from ExxonMobil

Steve Holtz, Editor in Chief, CSP Daily News

WASHINGTON -- With its purchase of 117 retail sites and supply agreements from Exxon Mobil Corp., PMG New Jersey LLC II has more than tripled its presence in the New Jersey market.

As reported in a Raymond James/CSP Daily News Flash yesterday, PMG purchased the Exxon-branded gasoline service stations and dealer supply-only agreements in northern and central New Jersey.

John Sartory, managing director and principal of Petroleum Capital & Real Estate LLC, which acted as the exclusive financial advisor for the deal, said many of the stores are supply-only agreements.

"The New Jersey market was broken into four clusters [by ExxonMobil]. PMG was originally awarded two of the four," he told CSP Daily News. "The dealers that exercised the right of first refusal, and there was a large percentage of them, did not have to sign a supply agreement with the jobber that won that cluster. They could have signed it with any distributor that was on Exxon's approved list.

"PMG did a good job of their staff going out, meeting with the dealers in their clusters, and then also picked up some volume from some other areas outside their two packages."

PMG expects to increase its total gasoline volume by about 200 million gallons from the deal, according to Sartory.

"The 117 sites include a mixture of fee locations that they took title to, some lease sites and a large number of supply-only agreements," he said. "This was a rare opportunity for our client to acquire a large number of premium real-estate sites and long-term supply-only agreements from the Exxon retailers that exercised their right of first refusal purchase option under New Jersey state law."

The Exxon deal is the second major acquisition by PMG in New Jersey. In December, PMG New Jersey LLC, a recently formed entity created by Washington-based Petroleum Marketing Group Inc., closed on the acquisition of 46 Shell gas stations in Northern New Jersey previously owned by Shell subsidiary Motiva Enterprises LLC.

This is the third major acquisition in which Petroleum Capital & Real Estate LLC, West Friendship, Md., has acted as the exclusive financial advisor to the Petroleum Marketing Group Inc.

(See Related Content below for previous CSP Daily News coverage.)

Steve Holtz, CSP/Winsight By Steve Holtz, Editor in Chief, CSP Daily News
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