ARKO Corp., through its subsidiary GPM Investments, has recently decided to acquire Pride Convenience Holdings, LLC. Pride operates 31 convenience stores in highly desirable locations. This acquisition would expand ARKO’s convenience store footprint into Massachusetts, making it the 34th state in which the company will operate.
“Our agreement to acquire Pride highlights ARKO’s continued focus on creating long-term shareholder value by growing our core convenience store business,” said Arie Kotler, ARKO’s chairman, president and CEO. “We believe Pride stores are top-tier assets, with a focus on excellent customer service and a quality loyalty program, and we further believe that we can add value to these assets through our operational and merchandising abilities and scale. We look forward to welcoming Pride’s employees to our Family of Community Brands and working together to enhance the business.”
ARKO’s agreement to acquire Pride and the recently announced agreement to acquire Transit Energy Group (TEG) exemplifies the company’s systematic growth strategy, which, since 2013, has significantly increased the company’s cash flow and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) by transforming the company from approximately 200 stores in seven states into one of the largest convenience store operators in the U.S., with over 1,388 company-operated convenience stores acquired through 21 acquisitions. Combined, Pride and TEG are expected to grow the company’s base of convenience stores by approximately 15%, adding 181 stores and a pipeline of new build opportunities.
“With our liquidity and dealmaking ability, we believe we have a long runway to continue our long-term growth strategy, making disciplined, accretive acquisitions at attractive multiples to continue growing our convenience store footprint,” said Kotler.
Pride is a convenience store operator in the Northeast with many large format stores, including two high-volume Travel Centers for long-haul truckers and two modern City Stop locations that cater to short-haul truckers. Additionally, Pride operates a centralized kitchen that provides fresh baked goods and food daily to all Pride stores.
“Pride is a success because of its dedicated team members, and we are excited for the opportunity to join a growing, long-term focused convenience store company with the scale Pride needs to continue enhancing our excellent offerings and strong brand name,” said Marsha Medina, CEO of Pride.
Pride stores are differentiated by its well-known fresh food selection supported by its corporate kitchen and bakery, which provides high-quality bakery items, sandwiches and other items to in-store Pride kitchens and as grab-and-go options made fresh daily. Additionally, Pride stores include other well-known offerings, including Subway and Chester’s Chicken franchises, along with seven high volume beer and wine operations. Drive-through service at some stores and utilization of popular delivery options such as Door Dash, Uber and Grub Hub underscore the quality and appeal of these foodservice options in the region.
ARKO Corp. is a fortune 500 company that owns 100% of GPM Investments, LLC and is one of the largest operators of convenience stores and wholesalers of fuel in the U.S. Based in Richmond, Va., its highly recognizable family of community brands offers prepared foods, beer, snacks, candy, hot and cold beverages and multiple popular quick-service restaurant brands
