- ARKO ( NASDAQ: ARKO ) said that GPM Investments, LLC a wholly owned subsidiary of ARKO, has agreed to acquire Pride Convenience Holdings, LLC, which operates 31 convenience stores in highly desirable locations.
- The total purchase price for Pride is ~$230M plus the value of inventory.
- ARKO intends to finance from its own sources ~$28.0M of the cash consideration plus the value of inventory and other closing adjustments.
- The remaining ~$202M is expected to be funded by Oak Street Real Estate Capital, a Division of Blue Owl Capital as part of the existing $1.15B agreement with the company, according to which Oak Street is expected to acquire the real estate assets of Pride as part of the transaction.
- The company would lease the real estate assets from Oak Street.
- The move to expand ARKO’s convenience store footprint into Massachusetts, making it the 34th state in which the company will operate.
- Pride is a leading convenience store operator in the Northeast with many large format stores, including two high-volume Travel Centers for long-haul truckers and two modern City Stop locations that cater to short-haul truckers.
- Additionally, Pride operates a centralized kitchen that provides fresh baked goods and food daily to all Pride stores.
- The company expects the addition will add ~$12.2M of Adjusted EBITDA on an annual run rate including synergies, after incremental annual rent of ~$12.2M to be paid to Oak Street for the forementioned lease.
- The closing of the deal is subject to fulfillment of conditions precedent and currently there is no certainty that the deal will close.
For further details see:
Arko agrees to acquire Pride Convenience for $230M