BETHLEHEM, Pa. -- With plans to upgrade the acquired locations, Waseem Petroleum Inc. (WPI) has closed on the acquisition of 16 Shell-branded gas stations and convenience stores in New Jersey owned by PMG NJ LLC.
As reported in a Raymond James/CSP Daily News Flash on Thursday, PMG NJ had acquired the sites as part of a 46-store transaction with Shell subsidiary Motiva Enterprises LLC in November 2011.
WPI is a well-established Shell- and BP-branded distributor in New Jersey, and all the sites are located in the central and northern section of the state. The company has a strong company operational focus that includes a 7-Eleven co-branding relationship at a number of its existing retail locations.
WPI, owned and operated by Waseem Chaudhary, is a leading provider of branded petroleum products and convenience retail services in Pennsylvania, New Jersey, New York, Ohio and Massachusetts. It provides dealer programs and company operations in branded gasoline, c-store and car wash services.
Petroleum Capital & Real Estate LLC acted as the exclusive financial advisor to Bethlehem, Pa.-based Waseem Petroleum.
"This transaction was a perfect opportunity for our client to acquire a large number of premium real estate sites in WPI's existing trade area," said John Sartory, managing director and principal of Petroleum Capital & Real Estate. "As part of the overall capital structure, a portion of WPI's existing retail network was also refinanced and several new credit facilities were established, which minimized the need for upfront equity, quickly facilitated the transaction closing and allowed for the future expansion of the company."
He added, "Our firm was able to generate a significant amount interest in WPI's credit facility opportunity in the capital markets and as a result, WPI has developed several new banking relationships that will provide financial support for future opportunities. This was especially important to the company since WPI plans to upgrade and modernize a number of the newly acquired retail units over the next several years."
West Friendship, Md.-based Petroleum Capital & Real Estate and its principals, John C. Flippen, Jr. and Sartory, provide financial advisory services for clients exclusively in the retail petroleum industry. The company has completed more than $800 million in c-store-related transactions within the past three years through senior/mezzanine/SLB/private equity. The company exclusively represents private-equity groups that are willing to make opportunistic investments in the industry.
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