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WOODBRIDGE, Va. — Petroleum Marketing Group Inc. (PMG) closed on an acquisition of 223 dealer-operated convenience stores and gas stations from Gulf Oil LP. A large concentration of the sites are in the Boston, New York City and Long Island regions. Terms of the transaction were not disclosed.
Woodbridge-based PMG is a large and well-established Shell, Exxon, BP, Mobil, Sunoco, Gulf, 76 and CITGO branded jobbership and serves as a distributor of petroleum products and services in the Northeast and Mid-Atlantic regions. The company sells more than 1 billion gallons of motor fuel products annually to a diverse group of convenience and gas customers.
Petroleum Capital and Real Estate LLC (PetroCapRE) exclusively represented PMG and provided assistance in the initial financial due diligence process, acquisition modeling, contract and supply negotiations, and procurement of capital required to close the transaction.
“We are excited that our firm could support PMG throughout this transaction process,” said John Sartory, managing director and principal of PetroCapRE. “This was a great opportunity for our client to further expand its existing retail network, customer base and management team in the Mid-Atlantic and Northeastern sections of the United States. We are honored that PMG chose PetroCapRE to be its exclusive financial advisor for this transaction and enjoyed working with their entire senior management team to facilitate this acquisition.”
According to PetroCapRE, it was able to create a competitive funding environment for its client that resulted in proposals from traditional senior debt lenders, sale-leaseback providers and many alternative financing mezzanine/private equity sources. This competitive process allowed PMG to quickly close on the acquisition and structure a creative financing package that met its overall strategic objectives, the financial group added.
PetroCap RE also exclusively represented PMG in 2014 when it acquired 27 former Cumberland Farms Inc. locations. These stores are located in New Jersey, Delaware and Pennsylvania. Cumberland Farms recently sold off Gulf Oil to Chelsea Petroleum Products Holdings LLC, an affiliate of ArcLight Capital Partners, a private equity and venture capital firm.
Richmond, Va.-based Petroleum Capital and Real Estate LLC provides buy-side acquisition, refinancing, capital restructuring and select sell-side advisory services in the convenience and gas industry.