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RICHMOND, Va. — GPM Investments LLC could be growing in the Midwest again.
A report by Globes, a media outlet in Israel, said Arko Holdings Ltd., whose principal business is U.S. fuel company GPM, announced an agreement on Sunday, Sept. 20 to buy up to 175 gas stations, convenience stores and tobacco stores in the Midwest.
When contacted by CSNews Online Wednesday, executives at GPM Investments declined to comment on a potential deal.
The company is currently in a quiet period. GPM Petroleum LP (GPMP) filed in April to raise up to $100 million in an IPO. As CSNews Online reported then, GPM Investments, operator of roughly 700 convenience stores, would purchase a majority of its motor fuel from GPMP.
According to the Globes report, this new Midwest acquisition agreement includes the purchase of 125 sites for gas stations and convenience stores. The price tag is estimated to be between $27 million and $29 million, subject to adjustments.
In the second stage, GPM has an option to buy the remaining 50 sites at an undisclosed price, which is slated to be set within 45 days of completion of the first part of the deal. The second stage is subject to completion of the first part of the deal.
Arko said the company was "continuing its business strategy aimed at reinforcing GPM's business and consolidating its position as one of the leading companies in its field in the U.S.," according to the report.
A separate report by Israel newspaper Haaretz detailed that the purchases would be from three different sellers and the move would expand GPM's holdings to approximately 950 outlets.
GPM operates in 16 states under several brand names including Fas Mart, Shore Stop, Scotchman Stores, Young's, Li'l Cricket and BreadBox, Village Pantry and Next Door Stores.