Insider's View: M&A Market Just Beginning to Pick Up

Two blockbuster acquisitions lead capital-markets review of Q2 2014

Dennis L. Ruben, Executive Managing Director, NRC Realty & Capital Advisors LLC

business deal handshake

Notable M&A Transactions

  • Atlas Oil Co. sold all of its BP-branded assets in Chicago and Northwest Indiana to Lehigh Gas Partners LP. Lehigh agreed to purchase 55 wholesale supply contracts, 11 fee and leasehold sites, two commission marketing contracts and certain other assets for a total consideration of $38.5 million. Lehigh also acquired certain short-term financing assets associated with the wholesale supply and commission marketing contracts for $11.9 million, bringing the total consideration for the transaction to $50.4 million.
  • The Mirabito Family of Cos., based in Binghampton, N.Y., agreed to purchase the entire chain of 17 convenience stores owned by Manley’s Mighty Marts LLC, which is also based in Binghampton, N.Y.
  • Petroleum Marketing Group Inc. (PMG) closed on the acquisition of 27 convenience stores owned by Cumberland Farms Inc. The retail sites are located in New Jersey, Delaware and Pennsylvania, and most of the locations sell fuel. PMG has 85 company-owned and -operated stores, as well as 500 stores operated by dealers and commissioned marketers in Virginia, Maryland, Washington, D.C., and New Jersey.
  • Lehigh Gas Partners LP acquired Roanoke, Va.-based Petroleum Marketers Inc. for a total consideration of $61 million. The acquisition consists of 85 convenience stores and nine co-branded convenience stores/quick-service restaurants located primarily along the Interstate 81 corridor in Virginia, with a concentration in the Roanoke area. The convenience stores operate under the company’s proprietary brand, Stop In Food Stores.
  • Par Petroleum Corp., the parent company of Hawaii Independent Energy LLC, agreed to acquire Koko’oha Investments Inc., the parent company of Mid Pac Petroleum LLC, for approximately $107 million. The acquisition involved 80 gasoline stations and convenience stores under the 76 fuel brand.

CONTINUED: Retailer Growth Initiatives

Part of CSP's 2014 Convenience Top 101 retailers
By Dennis L. Ruben, Executive Managing Director, NRC Realty & Capital Advisors LLC
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