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Harvest Partners SCF Acquires Minority Stake in GPM Investments

Move allows retailer to work toward its goal of ‘building the top convenience-store franchise’

RICHMOND, Va. -- Harvest Partners SCF, a non-control private equity investor, has completed the acquisition of a $62.5 million minority ownership position in GPM Investments, a privately owned convenience-store company.

Terms of the transaction were not disclosed, but the investment provided liquidity to existing owners.

“We welcome HP SCF (Harvest Partners SCF) as an investment partner, and believe they will be a value-added resource,” said Arie Kotler, president and CEO of GPM, Richmond, Va. “We are excited to work together with the HP SCF team to find and assess acquisition opportunities, as we continue toward our goal of building the top convenience-store franchise in the United States.”

GPM operates or supplies fuel to more than 1,000 stores throughout 18 states. Its c-stores offer a variety of food, beverage and grocery items. The company employs more than 7,500 people.

“We are thrilled to announce this proprietary investment in GPM,” said Jay Hegenbart, senior managing director and portfolio manager of HP SCF. “Arie has built an impressive business, and we are proud to add GPM to our portfolio of growing, founder-controlled companies.”

Jay Hegenbart and Sean Murphy, managing director for HP SCF, have joined GPM’s Board of Managers. Jerry Chan of HP SCF also worked on the investment.

“Arie and his team have proven they are the leading consolidators in the convenience-store sector,” Murphy said. “With the strength of GPM’s platform, we feel the company has significant prospects for further growth.”

Raymond James acted as a financial adviser to GPM. Latham & Watkins LLP served as legal counsel to HP SCF.

New York-based Harvest Partners SCF was founded in 2014 and is led by a team of investment professionals who collectively have more than 50 years of private equity investment experience.

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