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Allentown,
PA – May 2021 / Newsmaker Alert / CrossAmerica
Partners LP (NYSE: CAPL) (“CrossAmerica” or the “Partnership”), a leading
wholesale fuels distributor, convenience store operator and owner and lessor
of real estate used in the retail distribution of motor fuels, today announced
that it has entered into a definitive agreement to acquire certain convenience
store properties from 7-Eleven, Inc. (“7-Eleven”) for an aggregate cash
purchase price of $263 million, subject to certain adjustments.
The
sites to be acquired consist of company-operated sites that are being sold
by 7-Eleven as part of a divestiture process in connection with its previously
announced acquisition of the Speedway business from Marathon Petroleum
Corporation (“Marathon”), and are located in regions of the U.S. within
CrossAmerica’s existing asset base. The vast majority of the sites are
currently operating under the Speedway brand, and all sites will be rebranded
in connection with the closing. A total of approximately 160 million gallons
of motor fuel were sold at these locations during the trailing twelve month
period ended October 31, 2020, in addition to aggregate merchandise sales
of approximately $134 million during such period, in each case based on
unaudited financial information provided to CrossAmerica.
“We
are excited to acquire these high quality assets that are complementary
to our existing footprint and will allow us to benefit from increased scale
in our retail operations,” said Charles Nifong, President and CEO of CrossAmerica.
“The transaction provides excellent value to the Partnership and represents
continued execution of the strategic plan we set in action last year.”
The
acquisition is subject to the consummation of 7-Eleven’s transaction with
Marathon and Federal Trade Commission approval, as well as other customary
closing conditions. CrossAmerica expects to close on its acquisition of
these sites on a rolling basis, beginning approximately sixty to ninety
days after the closing of 7-Eleven’s transaction with Marathon. The Partnership
presently expects the acquisition to be immediately accretive to distributable
cash flow to limited partners. CrossAmerica expects to finance the transaction
through undrawn capacity under its existing revolving credit facility,
cash on hand, and/or additional debt financing from other sources.
The
terms of the transaction were unanimously approved by the board of directors
of the general partner of CrossAmerica. Skadden, Arps, Slate, Meagher &
Flom LLP is acting as legal counsel to CrossAmerica.
CrossAmerica
is filing a Form 8-K with the Securities and Exchange Commission providing
additional details of the transaction.
About
CrossAmerica Partners LP
CrossAmerica
Partners LP is a leading wholesale distributor of motor fuels, convenience
store operator and owner and lessee of real estate used in the retail distribution
of motor fuels. Its general partner, CrossAmerica GP LLC, is indirectly
owned and controlled by entities affiliated with Joseph V. Topper, Jr.,
the founder of CrossAmerica Partners and a member of the board of the general
partner since 2012. Formed in 2012, CrossAmerica Partners LP is a distributor
of branded and unbranded petroleum for motor vehicles in the United States
and distributes fuel to approximately 1,700 locations and owns or leases
approximately 1,100 sites. With a geographic footprint covering 34 states,
the Partnership has well-established relationships with several major oil
brands, including ExxonMobil, BP, Shell, Chevron, Sunoco, Valero, Gulf,
Citgo, Marathon and Phillips 66. CrossAmerica Partners LP ranks as one
of ExxonMobil’s largest distributors by fuel volume in the United States
and in the top 10 for additional brands. For additional information, please
visit www.CrossAmericaPartners.com.
View
Source
Contact:
Randy
Palmer (Investors)
210-742-8316
Cautionary
Statement Regarding Forward-Looking Statements
Statements
contained in this release that state the Partnership’s or management’s
expectations or predictions of the future are forward-looking statements.
The words “believe,” “expect,” “should,” “intends,” “estimates,” “target”
and other similar expressions identify forward-looking statements. It is
important to note that actual results could differ materially from those
projected in such forward-looking statements. Forward looking statements
relating to the Partnership’s acquisition of these sites from 7-Eleven
include the benefits of the transaction to CrossAmerica and its expected
impact on distributable cash flow to limited partners. Such forward-looking
statements are based on information currently available and involve estimates,
expectations and projections, which are subject to inherent risks and uncertainties
that could result in actual results varying from those presently anticipated,
including the risk that the cost savings and growth expected from the transaction
are not fully realized. .For more information concerning factors that could
cause actual results to differ from those expressed or forecasted, see
CrossAmerica’s Form 10-K or Forms 10-Q filed with the Securities and Exchange
Commission, and available on the CrossAmerica’s website at www.CrossAmericaPartners.com.
The Partnership undertakes no obligation to publicly update or revise any
statements in this release, whether as a result of new information, future
events or otherwise. |