WTG Fuels Holdings LLC has completed the sale of its retail motor fuels, convenience retail and fleet fueling businesses to subsidiaries of GPM Investments LLC, a subsidiary of ARKO Corp. The assets sold to GPM included 24 Uncle’s-branded convenience stores, 68 Gascard-branded cardlock sites, 43 private cardlock sites, the company’s Gascard fleet card assets and nine consignment and wholesale dealer accounts.
“The WTG acquisition fits squarely in our long-term growth strategy and our commitment to create value for our stockholders,” said Arie Kotler, chairman, president and CEO of ARKO. “We believe we will add significant value to the WTG business by leveraging our excellent integration capabilities, and we believe that the WTG business will benefit considerably from our merchandizing and marketing initiatives. We expect that the WTG business’ robust diesel business will advance our fuel strategy to maximize fuel gross profit dollars. We believe that Uncle’s and GASCARD are well-positioned to benefit from the scale and expertise at the heart of ARKO’s operations, and we welcome them to our family of community brands.”
WTG Fuels, based in Midland, Texas, is a large, diversified fuels distributor and convenience retailer with operations across west Texas and southeast New Mexico. Prior to the close of the transaction, the company’s assets included a chain of high-volume convenience stores operating under its proprietary Uncle’s brand, a large fleet fueling business operating under its proprietary Gascard brand and a delivered fuels business, serving residential and commercial customers that ranks among the largest propane distributors in the Southwest. WTG Fuels’ delivered fuels business, which provides propane, refined products and lubricants to nearly 19,000 residential and commercial customers through a network of over 70 bulk plants and warehouses, is not included in the sale to GPM and will continue to be operated by WTG Fuels post-closing.
WTG Fuels is a subsidiary of West Texas Gas (WTG), a provider of natural gas gathering, processing, transmission and distribution services throughout Texas and Oklahoma.
Matrix Capital Markets Group Inc. provided merger and acquisition advisory services to WTG, which included valuation advisory, marketing the business through a confidential, structured sale process, and negotiation of the transaction.
“Matrix proved to be an indispensable partner and advisor to WTG on the divestiture of these assets. We appreciate all the efforts of the Matrix team over the course of this transaction,” said John Steen, CEO of WTG.
“Our relationship with WTG first began back in late 2021 as we helped the company evaluate strategic alternatives for the WTG Fuels businesses,” added Vance Saunders, managing director at Matrix Capital. “After reviewing several options, the decision was made to divest WTG Fuels’ retail motor fuels, convenience retail and fleet fueling businesses through a carveout process to maximize the value of the company’s assets. We are grateful to WTG for entrusting us with this complex mandate.”
Established in 1976, WTG Fuels LLC is a Texas-based propane/refined petroleum distributor along with unattended fueling stations and retail gasoline/convenience store outlets. WTG Fuels provides, bulk gasoline, diesel, lubricants and propane for all aspects of industry, commercial uses and residential needs with over 40 warehouse locations.
