ALLENTOWN, Pa. --CrossAmerica Partners LP has closed on the purchase of all the outstanding shares of Hudson, Wis., based Erickson Oil Products Inc. and certain related assets for $85 million, subject to certain post-closing adjustments, the company announced.
Erickson operates 64 convenience stores in Minnesota, Michigan, Wisconsin and South Dakota, with a concentration in the Minneapolis and St. Paul region.
The partnership financed the transaction under its credit facility.
When the deal was announced in December 2014, CrossAmerica Partners said it intends to operate the Freedom Valu convenience stores, but it expects to transfer the operation of certain sites over time to CST Brands Inc., the parent company of CrossAmerica's general partner, CrossAmerica GP LLC, and one of the largest independent retailers of motor fuels and convenience store merchandise in North America, under the Corner Store and, with CrossAmerica, the Nice N Easy Grocery Shoppes retail banners.
"The Erickson family built a great organization with high-caliber employees and a strong work ethic. Along with our partners at CST, we expect to continue to grow the Erickson platform to further expand in the region," CrossAmerica Partners' president and CEO Joe Topper said at the time.
Allentown, Pa.-based CrossAmerica Partners is a leading wholesale distributor of motor fuels and owner and lessee of real estate used in the retail distribution of motor fuels. Formed in 2012 as Lehigh Gas Partners, CrossAmerica Partners distributes fuel to more than 1,100 gas stations and convenience stores and owns or leases more than 625 sites in 16 states: Pennsylvania, New Jersey, Ohio, Florida, New York, Massachusetts, Kentucky, New Hampshire, Maine, Tennessee, Maryland, Delaware, Illinois, Indiana, West Virginia and Virginia.
The partnership has long-term established relationships with several major oil brands, including ExxonMobil, BP, Shell, Chevron, Sunoco, Valero, Gulf and CITGO. CrossAmerica Partners ranks as one of ExxonMobil's largest distributors by fuel volume in the United States and in the top 10 for many additional brands, said the company.
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