ARKO Corp. released its Q1 2023 results, which include the closed acquisition of the assets of Transit Energy Group (TEG) and its affiliates, adding 135 convenience stores and 192 dealer locations, as well as the confirmation of the expected closing of WTG Holdings in Q2 2023. TEG also operates a transportation business with 58 trucks and 78 tanker trailers that supports the retail and wholesale business, all in the Southeastern U.S. This is ARKO’s 23rd acquisition since 2013.
TEG’s banners include Corner Mart, Dixie Mart, Flash Market, Market Express and Rose Mart. The c-stores are located throughout South Carolina, North Carolina, Tennessee, Mississippi, Missouri, Louisiana, Alabama and Arkansas. Many of the stores include well-known food offerings.
“ARKO’s demonstrated history of growing adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) and cash flow by executing the company’s long-term growth strategy, which is enhanced by our integration capacity and ability to add value to newly acquired stores with our merchandising and marketing, is what sets us apart as a convenience retailer,” said Arie Kotler, chairman, president and CEO of ARKO. “We believe we can add value to these stores and well-known regional brands with an enhanced offering as we reset these stores. We welcome TEG’s employees to our Family of Community Brands and look forward to working together to grow the business and provide value for customers.”
ARKO expects to close its acquisition of WTG in Q2, which includes Uncle’s Convenience Stores and GASCARD fleet fueling operations. WTG has 24 company-operated Uncle’s Convenience Stores across western Texas. The transaction also includes three land parcels and nine independent dealer locations. ARKO has also agreed to acquire WTG’s 57 proprietary GASCARD-branded fleet fueling cardlock sites and 52 private cardlock sites, one of the largest fleet fueling operations in west Texas.
Most recently, ARKO entered into a third amendment to the program agreement with Oak Street, which extends the term of the program agreement and provides for an aggregate up to $1.5 billion of capacity from the date the amendment was signed through Sept. 30, 2024.
Additionally, ARKO renewed and extended its revolving credit facility with a syndicate of banks led by Capital One, National Association. The credit line was increased by $300 million, to $800 million, and its maturity was extended to May 2028.
In aggregate, ARKO currently has more than $2 billion in available capital for continued merger and acquisition activity, including cash, lines of credit and the extended Oak Street program agreement.
Finally, ARKO’s subsidiary GPM Investments launched its new fas REWARDS app. The app offers enrolled loyalty members a variety of new features, including exclusive in-app deals, a virtual wallet, a geo-fenced location, a fas REWARDS Dashboard, order and delivery or pickup, and a referral program.
“The new fas REWARDS app is a leap forward for our company, helping develop personal relationships with our customers while providing them with many great features that save money and time shopping the great options our stores provide,” said Kotler.
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 United States. Based in Richmond, Va., it operates in four reportable segments: retail, wholesale, fleet fueling and GPM Petroleum.