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FRANKLIN, Tenn. -- Delek US Holdings Inc. wholly-owned subsidiary, MAPCO Express Inc., operator of nearly 500 convenience stores, completed the purchase of 90 retail fuel and convenience stores from Calfee Company of Dalton Inc. and its affiliated companies for $57 million excluding inventory.
"We are pleased to announce the substantial completion of our third acquisition since our initial public offering in May 2006," Uzi Yemin, president and CEO of Delek US, said in a written statement. "With this acquisition, we increase our stores in operation to nearly 500, which represents a strategic milestone. Together with the 43 Fast Petroleum stores acquired last summer, we believe the Favorite Markets stores establish MAPCO as a market leader in the Chattanooga market."
The stores operate under the Favorite Markets name and are located in eastern Tennessee and northern Georgia. Average sales for the stores during the previous three fiscal years totaled $242 million.
MAPCO continues to complete the purchase of the remaining 17 stores that are subject to the parties' definitive purchase and sale agreement. While the details are being finalized, MAPCO will operate the 17 stores according to an operating and management agreement between the two companies. The purchase of the remaining stores will cost the company $8 million and is expected to be finished during the current quarter, following the completion of necessary closing conditions.
Stay tuned for the April 16th issue of Convenience Store News for an exclusive interview with Yemin and his Delek US management team.