CrossAmerica Partners LP (NYSE : CAPL) acquired Certain assets of Community Service Stations Inc. for $27.5 million.
November 08, 2022
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CrossAmerica Partners LP (NYSE:CAPL) agreed to acquire Certain Assets of Community Service Stations Inc. for $27.5 million on August 23, 2022. The assets consist of wholesale fuel supply contracts to 39 dealer owned locations, 34 subjobber accounts and two commission locations (1 fee based and 1 lease). The supply contracts include approximately 75 million gallons of fuel annually through such fuel brands as Exxon Mobil, Shell, Gulf and others. The acquisition was financed with cash on hand and undrawn capacity under the CrossAmerica revolving credit facility. The terms of the transaction were approved by the board of directors of the general partner of CrossAmerica. The acquisition is subject to customary conditions to closing. The deal is expected to close during the fourth quarter of 2022. The Partnership expects the acquisition to be immediately accretive to distributable cash flow to limited partners. Matrix Capital Markets Group, Inc. served as the exclusive financial advisor to Community Service Stations, Inc.
CrossAmerica Partners LP (NYSE:CAPL) completed the acqusiition of Certain Assets of Community Service Stations Inc. on November 9, 2022.
CrossAmerica Partners LP is a wholesale distributor of motor fuels, convenience store operator, and owner and lessee of real estate used in the retail distribution of motor fuels. The Company operates through two segments: Wholesale, and Retail. The Wholesale segment includes the wholesale distribution of motor fuel to lessee dealers and independent dealers. The Retail segment includes the retail sale of motor fuel at retail sites operated by commission agents and the sale of convenience merchandise items and the retail sale of motor fuel at company operated sites. The Company distributes motor fuel on a wholesale basis to approximately 1,700 sites located in 34 states. The Company owns or leases approximately 1,100 sites, of which it operates 295 as company operated sites. The Company distributes branded motor fuel under the Exxon, Mobil, BP, Shell, Sunoco, Valero, Gulf, Citgo, Marathon, and Phillips 66 brands to its customers.