CrossAmerica Closes on Acquisition of State Oil Assets

ALLENTONWN, Pa. — CrossAmerica Partners LP has completed its acquisition of several assets in the Midwest from State Oil Co. for a total consideration of $43.1 million.

The transaction included retail assets and the wholesale fuels distribution of Libertyville, Ill.-based State Oil and certain related entities. The two companies reached an acquisition agreement in July, as CSNews Online previously reported. 

Immediately prior to the closing of the transaction, the portfolio acquired by CrossAmerica consisted of three company-operated convenience stores, 50 lessee dealers, 24 supply accounts, two non-fuel tenant locations, and three non-operating sites, according to Matrix Capital Markets Group Inc. 

Matrix provided merger and acquisition advisory services to State Oil. 

The deal also included the real estate at 57 locations and the leasehold interest at one site. With the exception of one site located in Wisconsin, all of the stores are located in the greater Chicago metropolitan area.  

The seller-financed land contracts associated with five of the State Oil's supply accounts were also part of the transaction.

In separate but related transactions, four locations owned in fee simple by State Oil were sold or are currently under contract to be sold to three other unrelated buyers.

The deals mark State Oil's exit from the business. 

Peter and Bill Anest bought the company in 1973 and over the past 40 years, grew it into one of the largest petroleum distributors in the greater Chicago area. Over the past five years, Matrix has worked with State Oil as the company and its owners have evaluated its strategic business plans, which ultimately culminated in the decision to sell.  

"We greatly appreciate the advice and expertise that Matrix provided in the sale of the company," the owners said. 

The transaction was co-managed by Thomas Kelso, managing director and head of the Downstream Energy & Retail Group, and John Underwood, director, Stephen Lynch, senior associate, and John Duni, senior analyst, also advised on the transaction.  

"It has been a pleasure to work with the Anest family and to assist them in the sale of the company. We truly value the relationship that was built with the family over the past five years and the opportunity to represent State Oil," Underwood said.
 
Richard Nikchevich and Jeremy Segal of Barack Ferrazzano Kirschbaum & Nagelberg LLP served as legal counsel for State Oil.

Allentown-based CrossAmerica Partners is a wholesale distributor of motor fuels and owner and lessee of real estate used in the retail distribution of motor fuels. Its general partner, CrossAmerica GP LLC, is a wholly owned subsidiary of CST Brands Inc.

CrossAmerica Partners is a distributor of branded and unbranded petroleum for motor vehicles in the United States and distributes fuel to more than 1,190 locations, and owns or leases more than 800 sites.