RICHMOND, Va. — GPM Investments LLC, a subsidiary of ARKO Corp., has completed its acquisition, announced in October, of Pride Convenience Holdings LLC, which operates 31 convenience stores, expanding ARKO’s convenience-store footprint into Massachusetts, now the 34th state in which the company operates.
Pride, the company’s 22nd acquisition since 2013, operates in the Northeast with large-format stores, including two high-volume travel centers designed for long-haul truckers and two City Stop locations that cater to short-haul truckers, as well as a new-to-industry (NTI) City Stop location that broke ground in July 2022.
“ARKO’s primary focus is creating long-term shareholder value by growing our core convenience-store business,” said Arie Kotler, ARKO’s chairman, president and CEO. “We believe we can enhance the value of Pride’s stores and strong regional brand through our operational and merchandising abilities and scale. We welcome Pride’s employees to our family of community brands and look forward to working together to enhance the business and provide value for customers.”
The total purchase price for Pride was approximately $230 million plus the value of inventory. ARKO financed from its own sources approximately $30 million of the cash consideration including the value of inventory and other closing adjustments. Oak Street Real Estate Capital, a division of Blue Owl Capital, New York, funded the remaining approximately $202 million as part of the existing $1.15 billion agreement with ARKO, through which Oak Street acquired the majority of the real estate assets of Pride. The company now leases these real estate assets from Oak Street.
Pride stores offer a fresh food selection supported by its corporate kitchen and bakery, which provides bakery items, sandwiches, wraps, salads and other items to in-store Pride Kitchens and as grab-and-go options made fresh daily. Stores also offer popular quick-service options including Subway and Chester’s Chicken franchises. Many stores offer drive-through service and popular delivery options.
Pride locations sold approximately 74.2 million total fuel gallons sold in 2021 with strong diesel mix at Travel Center and City Stop locations. A network of onsite electric chargers significantly increases the charger count in ARKO’s footprint.
ARKO’s Growth
Since 2013, ARKO’s systematic growth strategy has significantly increased the company’s cash flow and adjusted EBITDA by transforming the company from approximately 200 stores in seven states into one of the largest c-store operators in the United States, with approximately 1,400 company-operated c-stores.
“I believe ARKO is in a great position, with excellent liquidity and proven dealmaking ability, to continue our long-term growth strategy and grow our convenience-store footprint through disciplined, accretive acquisitions at attractive multiples,” said Kotler.
In early December, ARKO agreed to acquire the retail, wholesale and fleet fueling assets of WTG Fuels Holdings LLC, a Midland, Texas-based c-store operator with 24 company-operated Uncle’s Convenience Stores in Texas for approximately $140.4 million plus the value of inventory at closing. The transaction also includes nine independent dealer locations and WTG’s 57 proprietary Gascard-branded fleet fueling cardlock sites and 52 private cardlock sites.
- GPM is No. 6 onCSP’s 2022 Top 202 ranking of U.S. convenience-store chains by store count.
ARKO Corp. owns 100% of Richmond, Va.-based GPM Investments LLC and is one of the largest operators of convenience stores and wholesalers of fuel in the United States. Founded in 2003, GPM has grown through acquisitions to become the sixth-largest convenience-store chain in the United States, with approximately 2,950 locations, including approximately 1,350 company-operated stores and approximately 1,600 dealer sites to which it supplies fuel in 33 states and Washington, D.C. Its c-store brands include Fas Mart, Shore Stop, Scotchman, BreadBox, Young's, Li'l Cricket, Next Door Store, Village Pantry, Apple Market, Jiffi Stop, Admiral, Roadrunner Markets, Jiffy Food Marts, E-Z Mart, 1 Stop and TownStar, among others.
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