You are here
NASHVILLE, Tenn. — The sale of MAPCO Express Inc.’s retail network to Compañía de Petróleos de Chile COPEC S.A. (COPEC) is expected to close this month, MAPCO parent company Delek US Holdings Inc. announced during the company's third-quarter earnings call Tuesday.
On Aug. 29, Delek announced it had entered into a definitive agreement with COPEC, whereby Delek will sell MAPCO and certain related affiliated companies to a U.S. subsidiary of COPEC for a total of $535 million, as CSNews Online previously reported.
Convenience store chain MAPCO has 348 corporate stores operating primarily in Tennessee, Alabama and Georgia, with additional presence in Arkansas, Virginia, Kentucky and Mississippi. MAPCO operates company stores under the banners MAPCO Express, MAPCO Mart, East Coast, Fast Food and Fuel, Favorite Markets, Delta Express and Discount Food Mart.
In addition, MAPCO provides fuel to 142 dealer locations (as of July 31), and provides logistical fuel transportation to MAPCO and third parties with approximately 50 tractors and trailers.
The sale transaction is subject to customary regulatory and closing conditions.
"The sale of MAPCO to COPEC allows Delek to simultaneously unlock the value of these assets and gain a continuing competitive partner in retail fuel sales," said Uzi Yemin, chairman, president and CEO of Delek. "We believe this transaction will provide Delek with increased financial flexibility as we explore future opportunities, and creates an exciting opportunity for the MAPCO brand and its employees as it becomes part of COPEC's growth strategy."
COPEC is one of the largest companies in Chile, operating in fuel and lubricants distribution and convenience stores. COPEC has an existing industry presence with the largest c-store network in Chile and approximately 53 percent of Chile's gasoline market share with 626 company- and dealer-operated service stations, 82 Pronto-branded convenience stores and 220 Punto-branded convenience stores.
In addition, COPEC has a majority ownership stake (58.9 percent) in Organizacion Terpel S.A., which is based in Bogota, Colombia, and accounts for approximately 45 percent of Colombia's fuel market share. Terpel has 1,949 Terpel-branded gas stations in Colombia and 233 stores in Panama, Ecuador, Peru and Mexico under store brands Altoque and Deuna selling Terpel-branded fuel.
As a result of the sale agreement, Delek said it moved the retail-related assets to "discontinued operations" for reporting purposes for the third quarter of 2016, ended Sept. 30. The operating income from discontinued operations for the quarter was $11 million, which included approximately $4.5 million of depreciation. The after-tax income was $6 million, according to the earnings report.