CrossAmerica Partners LP: Announces Pending Acquisition of Assets of Jet Pep of Alabama

Source Press Release
Company CrossAmerica Partners LPAlimentation Couche-Tard Inc 
Tags Asset Deals, Deals, Pipelines/ tankers/ distribution, LNG & Gas Storage/Processing, Refining & Marketing Activities
Date August 07, 2017
  • CrossAmerica announces agreement to acquire certain assets of one of the largest fuel operators in Alabama; transaction expected to close in the fourth quarter

CrossAmerica Partners LP (NYSE: CAPL) ("CrossAmerica" or "the Partnership") announced today that it has entered into a definitive agreement to acquire certain assets of Holly Pond, AL based Jet Pep, Inc. for a total consideration of $72 million.  The assets consist of 102 commission operated retail sites, including 92 fee sites, 5 lease sites and 5 independent commission accounts.  The locations sold nearly 91 million gallons of unbranded fuel in 2016.

In addition, Circle K Stores, Inc., a subsidiary of Alimentation Couche-Tard and the general partner of CrossAmerica, has also agreed to purchase certain other assets from Jet Pep, Inc., including a fuel terminal, associated trucking equipment and 18 other retail sites for an undisclosed amount.

"We are excited to acquire the assets of one of the largest fuel supply networks in Alabama," said President and CEO Jeremy Bergeron.  "This acquisition expands our presence in the South, and demonstrates our ability to execute on strategic M&A opportunities with our new general partner sponsor." 

The acquisition is subject to customary conditions to closing and is expected to close in the calendar fourth quarter of 2017.  The Partnership expects the acquisition to be accretive to distributable cash flow to limited partners.

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