GPM Investments announced that it has entered into a non-binding letter of intent for the acquisition of approximately 60 self-operated retail convenience stores in several Midwestern states.
Consideration for the transaction is approximately $100 million, plus the value of inventory and cash in stores. Overall, the company said this new agreement represents a continuation of GPM’s strategy to consolidate the fragmented convenience store marketplace, and to drive returns for investors.
This is the latest of several announcements from the brand.
In September, GPM and its Israel-based controlling shareholder Arko Holdings Ltd. signed an agreement with Haymaker Acquisition Corp. to form a new, publicly traded company called Arko, which provides the company with “increased liquidity and access to the broader capital markets, enabling us to continue to execute on our proven growth strategy,” said Arie Kotler, CEO of Arko and GPM, at the time of the announcement.
More recently, Arko Holdings and GPM announced plans for its store prototype of the future for remodels and raze and rebuilds. GPM currently anticipates that it will remodel approximately 360 of its sites in key locations across the country over the next three to five years.
The companies also announced a commitment for an up to $100 million investment in convertible preferred stock from MSD Capital that will be available for growth capital and funding this remodel program.
Based in Richmond, Va., GPM was founded in 2003 with 169 stores and has grown through acquisitions to become the seventh-largest convenience store chain in the U.S., with, following the consummation of the Empire acquisition, 2,930 locations comprised of 1,350 company-operated stores and 1,580 dealer sites to which it supplies fuel, in 33 states and Washington D.C.
GPM operates in three segments: retail, which consists of fuel and merchandise sales to retail consumers; wholesale, which supplies fuel to third-party dealers and consignment agents; and GPM Petroleum, which supplies fuel to GPM and its subsidiaries selling fuel (both in the retail and wholesale segments) as well as subwholesalers and bulk purchasers.