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MECHANICSVILLE, Va. -- GPM Investments LLC, operator of Fas Mart and Shore Stop convenience stores, finalized the acquisition of 70 Sweet Oil Co. convenience stores operating under the Uncle Willies banner for $47.5 million late Wednesday.
Stores are located in Delaware, Maryland, Virginia, New Jersey and Pennsylvania. Seven of the 74 stores operate under management agreements, the rest operate under supply agreements that have been transferred to GPM. Newark, Del.-based Sweet Oil is a privately-owned jobber that supplies more than 70 million gallons of gasoline annually.
"The acquisition is a perfect strategic fit for us, will enhance our profile in the Delmarva Peninsula and will also allow us to expand into new contiguous markets," Dave McComas, the president and CEO of GPM, said at the announcement of the acquisition.
GPM will continue to operate Sweet Oil's dealer network in agreement with the contracts it purchased, and will hire some personnel from Sweet Oil as well.
The deal is being financed by a sale and leaseback agreement between GPM and a real estate investment trust (REIT), for approximately $40.5 million, whereby the REIT will purchase the real estate and lease it back to GPM for a 15-year term, according to McComas.
Other financing includes 18-month seller financing in the amount of $5 million, bank financing of $6 million and $2.4 million in equity from GPM.
GPM operates 146 stores and supplies petroleum products to 61 locations in Virginia, Delaware, Maryland, North Carolina and Connecticut. The company has plans for three additional acquisitions in the upcoming year -- a $1.8 million deal expected to close within the next 30 days, a $17 million acquisition and a larger $45 million deal -- that were announced at the company's 2007 Trade Show in early March.