GPM looks to work with Harvest Partners to find and assess acquisition opportunities.
Harvest Partners SCF, LP has completed the acquisition of a $62.5 million minority ownership position in GPM Investments LLC, the largest privately-owned convenience store company in the United States.
GPM is led by president and CEO Arie Kotler. The investment provided liquidity to existing owners. Terms of the transaction were not disclosed.
GPM, based in Richmond, Va., operates or supplies fuel to over 1,000 stores located throughout 18 states, making it the overall eighth largest convenience store chain in the country. The Company’s locations span the Midwest, Southeast, Mid-Atlantic, and Northeast United States. In addition to quality fuel, GPM’s convenience stores offer a variety of food, beverage and grocery items. The company employs over 7,500 people.
“We are thrilled to announce this proprietary investment in GPM,” said Jay Hegenbart, senior managing director and portfolio manager for HP SCF. “Arie has built an impressive business, and we are proud to add GPM to our portfolio of growing, founder-controlled companies.”
“We welcome HP SCF as an investment partner, and believe they will be a value-added resource,” said Kotler. “We are excited to work together with the HP SCF team to find and assess acquisition opportunities, as we continue towards our goal of building the top convenience store franchise in the U.S.”
“Arie and his team have proven they are the leading consolidators in the convenience store sector,” added Sean Murphy, managing director at HP SCF. “With the strength of GPM’s platform, we feel the Company has significant prospects for further growth.”
Jay Hegenbart and Sean Murphy have joined the Board of Managers of GPM. Jerry Chan of HP SCF also worked on the investment.
Raymond James acted as a financial advisor to GPM. Latham & Watkins LLP served as legal counsel to HP SCF.