WALTHAM, Mass. – As part of an effort to convert nonstrategic retail outlets into capital for acquisitions, Global Partners LP has completed the previously announced sale of 30 nonstrategic convenience stores in New York and Pennsylvania to Mirabito Holdings Inc. for approximately $40 million.
The transaction includes long-term supply contracts for branded and unbranded gasoline and other petroleum products. Global Partners used approximately $28 million of the proceeds to pay down debt under the partnership’s revolving credit facility, and the balance of the proceeds remain available to pursue like-kind exchange transactions to acquire retail gasoline assets.
“The Mirabito transaction reflects our ongoing focus on monetizing nonstrategic retail sites to further strengthen our balance sheet and provide additional flexibility to invest in assets that are fundamental to our growth objectives,” said Eric Slifka, president and CEO of Waltham, Mass.-based Global Partners. “At the same time, establishing long-term supply agreements with the purchaser allows us to continue to earn a supply margin.”
The Mirabito Family of Cos. operates in eight states with multiple divisions, including natural gas and electric, home energy products and services, wholesale energy products and services, convenience stores and truck repair. The Binghamton, N.Y.-based company operates about 75 convenience stores under the Mirabito, Quickway Food Stores, Convenience Express and Manley’s Mighty-Mart names.
A publicly traded master limited partnership, Global Partners is a midstream logistics and marketing company that owns, controls or has access to one of the largest terminal networks of petroleum products and renewable fuels in the Northeast. It also is one of the largest distributors of gasoline, distillates, residual oil and renewable fuels to wholesalers, retailers and commercial customers in New England and New York. With about 1,500 locations, primarily in the Northeast, Global Partners also is one of the largest independent owners, suppliers and operators of gas stations and convenience stores.
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