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RICHMOND, Va. — GPM Investments LLC has reached an agreement with Road Ranger LLC to acquire 43 convenience stores. The pact marks GPM's move into the Midwest market.
The deal, which includes gas and one Subway location, is slated to close in the first quarter of 2015.
"Road Ranger, with its well-deserved reputation in the Midwest region, is a great fit for GPM, allowing us to broaden our exposure in the convenience and fuel channels of business," said GPM President and CEO Arie Kotler. "We are excited to maintain this path of expansion as an acquisition based company and we will continue to seek more opportunities to grow strategically."
This retail brand acquisition will add to GPM's existing portfolio of convenience stores, which previously served stores in the Northeast and Southeast. GPM will initially operate these acquired stores under the Road Ranger brand name and then transition to one of its existing retail brands.
GPM will extend an offer to the existing operations employees of the acquired stores to join the company. Keeping the existing store employees in place is very important to both GPM and the current Road Ranger leadership team, according to the Richmond-based company.
"Road Ranger has been focusing its resources and energies on improving and expanding its network of truck stop and travel center locations in the U.S. This divestiture is being made to support that growth mission and to accelerate its realization," explained Road Ranger President David Saporta. "It was, however, of the utmost importance that our employees of these 43 c-store locations would be offered continued employment with a highly capable and employee-friendly company that is committed to the c-store business. GPM has proven itself to be such a company."
Raymond James served as financial advisor to Road Ranger LLC on the transaction.
GPM Investments is one of the largest privately owned companies in the convenience store industry, currently operating 463 retail stores and 115 dealer locations. Upon completion of the Road Ranger acquisition, GPM will widen their reach to 621 stores and a new total of 11 states. GPM banners include Fas Mart, Shore Stop, Scotchman Stores, Young’s, Li'l Cricket and BreadBox.
Road Ranger is a privately held retail petroleum company based in Rockford, Ill. operating under the name Road Ranger. Following this transaction Road Ranger will continue to operate more than 30 truck stop and travel center locations in six states with additional locations to be added through both acquisitions and new-to-the-industry ground-ups in the near future, primarily in Texas and Illinois.