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RICHMOND, Va. — GPM Investments LLC's growth opportunities just received a financial boost.
The company closed a $70-million minority private equity investment by an investment company concentrating on the energy sector, which will pave the way for a new wholly owned subsidiary for GPM. This subsidiary will purchase motor fuel from major integrated oil companies and independent refiners and distribute fuel to GPM at a fixed margin.
"We are delighted to announce this equity raise from a strong partner for our newly operating subsidiary. GPM is now in an even stronger position to continue its acquisition growth strategy in the convenience store and wholesale fuel distribution sector," said Arie Kotler, president and CEO of GPM. "This is an exciting transaction for everyone involved and will provide a tremendous capital base for GPM's next stage of growth."
In addition, according to Kotler, GPM arranged a credit facility with $110 million of availability and a $110-million accordion to fund acquisitions, subject to obtaining additional commitments from lenders or other banks.
Raymond James & Associates Inc. served as sole financial advisor to GPM on the equity private placement and credit facility.
Richmond-based GPM Investments, together with its subsidiaries, operates 665 company-op convenience stores, as well as more than 100 dealer locations. Its store banners include Road Ranger, Village Pantry, Next Door Stores, Fas Mart, Shore Stop, Scotchman Stores, Young's, Li'l Cricket and BreadBox.
The company operates or supplies stores in Connecticut, Delaware, Illinois, Indiana, Iowa, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee and Virginia.