CrossAmerica Partners LP is purchasing all the outstanding shares of Hudson, Wis.-based Erickson Oil Products Inc. and certain related assets for $85 million, subject to certain closing adjustments.
Erickson operates 64 convenience stores located in Minnesota, Michigan, Wisconsin and South Dakota, with a concentration in the Minneapolis / St. Paul region. The stores operate primarily under Erickson’s own proprietary store brand, Freedom Valu. Of the 64 store locations, 59 are owned fee simple with the remaining sites being leaseholds. For the 12-month period ended Oct. 31, 2014, the stores sold approximately 68 million gallons of motor fuel and had approximately 95 million in non-fuel revenue at the stores.
The partnership initially intends to operate the convenience stores within the partnership and expects to transfer the operation of certain sites over time to CST Brands Inc., the parent company of the general partner of the partnership and one of the largest independent retailers of motor fuels and convenience merchandise in North America.
“We are delighted to acquire the high quality Erickson portfolio as well as to enter into a promising new market,” said President and CEO Joe Topper. “The Erickson family built a great organization with high caliber employees and a strong work ethic. Along with our partners at CST, we expect to continue to grow the Erickson platform to further expand in the region,” Topper added.
“This acquisition will enhance Erickson’s growth and competitiveness, and create new opportunities for our customers, employees and communities,” said Gary Vander Vorst, president of Erickson.
The transaction is subject to customary closing conditions and is expected to close during the first quarter of 2015.