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Arko Petroleum to acquire US Petroleum Partners
['Jessica Loder', 'Mon', 'August', 'At Am Gmt', 'Min Read']
Yahoo Finance
Dive Brief:Arko Petroleum, the wholesale arm of convenience retailer Arko Corp., has agreed to acquire U.S. Petroleum Partners, a vertically integrated fuel supply and distribution platform serving the Great Lakes region, according to a Thursday announcement.
Arko Petroleum expects the deal to create growth through throughput expansion, incremental fee-based earnings streams and operational synergies.
Dive Insight:Arko Petroleum's strategy, much like what Arko Corp's has been for years, is to grow through disciplined, accretive acquisitions, said Arie Kotler, chairman, president and CEO of both Arko Petroleum and Arko Corp., in Arko Corp's earnings call last week.
Once the deal closes, Arko Petroleum will serve more than 2,500 wholesale locations, per the announcement.
Arko Petroleum expects the acquisition to contribute about $30 million in annual EBITDA after closing, as well as enhance discretionary cash flow.