FRANKLIN, Tenn. -- Delek US Holdings Inc. said that MAPCO Express Inc., a wholly owned subsidiary, has completed the purchase of 40 retail fuel and convenience stores from Fast Petroleum Inc., for approximately $42 million (excluding inventory).
The company had previously announced an agreement with Fast Petroleum to purchase 43 retail and fuel convenience stores, which are located in northwest Georgia and southeast Tennessee. The company is continuing to work toward obtaining the third party consents necessary to complete the purchase of the remaining [image-nocss] three c-stores.
The 43 stores produced total sales of approximately $111 million and sold approximately 46 million gallons of fuel in the 12 months ended December 31, 2005. The purchase was financed with a combination of cash proceeds from Delek's recently completed IPO and MAPCO's revolving credit facility, which was increased from $70 million to $120 million.
Commenting on the announcement, Uzi Yemin, President and CEO of Delek US, Franklin, Tenn., said, The successful purchase of these 40 convenience stores within 30 days of the signing of the definitive agreement reflects well on our ability to implement our acquisition strategies and enhances the reputation we have developed in our markets as a credible acquiror.
Delek US Holdings Inc. is a diversified energy business focused on petroleum refining and supply and on retail marketing. The company's business consists of two main operating segments: refining and retail. The refining segment operates a high conversion, independent refinery, with a design crude distillation capacity of 60,000 barrels per day, in Tyler, Texas. The retail segment markets gasoline, diesel and other refined petroleum products and convenience merchandise through a network of company- operated retail fuel and convenience stores, operated under the MAPCO Express, MAPCO Mart, East Coast and Discount Food Mart brand names.
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