CrossAmerica Partners LP has entered into a definitive agreement to acquire certain assets of Holly Pond, Alabama-based Jet Pep Inc. for a total consideration of $72 million. The assets consist of 102 commission-operated retail sites, including 92 fee sites, five lease sites and five 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, also has 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 CrossAmerica Partners President & 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 closing conditions and is expected to close in the calendar fourth quarter of 2017. CrossAmerica expects the acquisition to be accretive to distributable cash flow to limited partners.