Mergers & Acquisitions

Major Transaction Stirs Up East Coast Markets

PMG acquires 223 convenience stores in Boston, New York areas

WOODBRIDGE, Va. -- In a move that helps expand considerably its retail footprint, Petroleum Marketing Group Inc. (PMG) has closed on the acquisition of 223 dealer-operated gas stations and convenience stores formerly owned by Gulf Oil LP.

Petroleum Marketing Group PMG Gulf

As reported in a McLane/CSP Daily News Flash, the sites are in the Northeast and Mid-Atlantic regions, extending from Pennsylvania to Maine. Large concentrations of the sites are in the greater metropolitan areas of Boston and New York City and on Long Island.

Woodbridge, Va.-based PMG is a large Shell, Exxon, BP, Mobil, Sunoco, Gulf, 76 and CITGO branded jobbership and a leading regional distributor of petroleum products and services in the Mid-Atlantic and Northeast. PMG services more than 850 locations, from Tidewater, Va., to northern New Jersey. It sells more than one billion gallons of motor fuel products to a diverse group of customers on an annual basis.

Petroleum Capital & Real Estate LLC (PetroCapRE), West Friendship, Md., represented PMG and provided professional assistance in the initial financial due-diligence process, acquisition modeling, contract and supply negotiations and procurement of capital required to close the transaction.

“This was a great opportunity for our client to further expand its existing retail network, customer base and management team in the Mid-Atlantic and Northeastern sections of the U.S.,” said John Sartory, managing director and principal of PetroCapRE.

Wellesley, Mass.-based Gulf Oil LP is a leading distributor of motor fuels, both gasoline and diesel, to more than 2,300 branded outlets as well as 1,000 private-label retail outlets operated by major chain retailers in 30 states. It owns and operates 12 proprietary terminals as well as supplies wholesale product through 75 other terminals.

Boston-based private-equity firm ArcLight Capital Partners LLC affiliate Chelsea Petroleum Products Holdings LLC completed its purchase of Gulf Oil LP from Cumberland Farms Inc. at the end of December. In a related transaction, Blue Hills Fuels LLC, another ArcLight affiliate, purchased Gulf's Assured Dealers business, which collects rent from more than 200 owned or leased, but non-operated, independently franchised sites under the Gulf or Mobil brand that also purchase branded product under contract from Gulf Oil.

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