CrossAmerica becomes Holiday Station stores franchisee.
In a $48.5 million agreement, CrossAmerica Partners LP will acquire 31 franchise Holiday stores located in Wisconsin and Minnesota from SSG Corp.
Of the 31 company-operated stores, 28 are located in Wisconsin and three are located in Minnesota. Twenty-seven of the sites are owned fee simple locations. For the 12-month period ended Aug. 31, 2015, the sites sold approximately 26.5 million gallons of motor fuel and had approximately $44.0 million in inside sales.
“We are delighted to acquire this great network of stores and become a Holiday Station stores franchisee,” said President Jeremy Bergeron. “This acquisition complements our acquisition of Erickson Oil Products made in early 2015 and further solidifies CrossAmerica’s commitment to the Minnesota and Wisconsin region,” Jeremy added.
“We look forward to working together with CrossAmerica on finalizing this transaction,” said Burt Nordstrand, founder and CEO of SSG Corp. “The strength of SSG has always been our employees and we are grateful to them for their many years of loyal service. SSG was the first Self Service gasoline company in our area and operated under the company-owned “Auto Stop” brand for the first 32 years and under the “Holiday” franchise brand for the last 13 years.”
The acquisition is subject to customary conditions to closing and is expected to close in the first quarter of 2016. The Partnership expects the acquisition to be accretive to distributable cash flow to limited partners.
