ALLENTOWN, Pa. -- CrossAmerica Partners LP will acquire more than 100 retail sites from Jet Pep Inc. for a total consideration of $72 million. The assets consist of 102 commission-operated retail sites, including 92 fee sites, five lease sites and five independent commission accounts. The locations sold nearly 91 million gallons of unbranded fuel in 2016, according to CrossAmerica.
In addition, Circle K Stores Inc., a subsidiary of Alimentation Couche-Tard and the general partner of CrossAmerica, has also agreed to purchase certain other assets from Jet Pep Inc., including a fuel terminal, associated trucking equipment and 18 other retail sites, for an undisclosed amount.
"We are excited to acquire the assets of one of the largest fuel supply networks in Alabama," said CrossAmerica President and CEO Jeremy Bergeron. "This acquisition expands our presence in the South and demonstrates our ability to execute on strategic M&A opportunities with our new general partner sponsor."
The acquisition is subject to customary conditions to closing and is expected to close in the calendar fourth quarter of 2017. The partnership expects the acquisition to be accretive to distributable cash flow to limited partners.
Holly Pond, Ala.-based Jet Pep Inc. owns a network of stores across Alabama and historically has relied on a dealer-lessee network to operate the stores.
CrossAmerica Partners, Allentown, Pa., is a leading wholesale distributor of motor fuels and owner and lessor of real estate used in the retail distribution of motor fuels. Its general partner, CrossAmerica GP LLC, is a wholly owned subsidiary of Alimentation Couche-Tard Inc., Laval, Quebec.