Arko to acquire Pride Convenience’s 31-store network, expanding to Massachusetts

Dive Brief:

Arko, the parent company for c-store giant GPM Investments, has agreed to acquire all 31 Pride Market c-stores from Pride Convenience Holdings for $230 million plus inventory, according to a Monday announcement.
This acquisition would expand Arko’s c-store footprint into Massachusetts, making it the 34th U.S. state where the company will have a presence.
The move comes just a month after Arko acquired 350 wholesale and retail sites from Transit Energy Group (TEG) for $375 million. Combined, Pride and TEG are expected to grow Arko's c-store base by about 15%, the company said in its announcement.

Dive Insight:

Pride marks Arko’s second c-store acquisition this year and 22nd since 2013, and the company will “continue growing our convenience store footprint,” Arie Kotler, chairman, president and CEO of Arko, said in the announcement.

Of the 31 Pride Market c-stores in the acquisition, 26 are in Massachusetts, while the remaining five are located in Connecticut. Pride also has two travel centers and two city stop locations that cater to long-haul and short-haul truckers, respectively, and has a network of on-site electric-vehicle chargers.

Inside its stores, Pride offers food and baked goods such as sandwiches, wraps and salads for in-store pickup and delivery through its Pride Kitchens program. Various stores also offer QSR services, including Subway and Chester’s Chicken, and drive-thru options as well.

When Arko acquires a c-store chain, it usually doesn’t alter the stores’ brands and, oftentimes, customers may not even know there’s been a change, Kotler recently said in an interview.

That would appear to be the case in this situation, as Kotler said in Monday’s announcement that Arko will look to add value to Pride’s assets — specifically, its customer service and loyalty program — through its operational and merchandising abilities. Additionally, Pride’s CEO, Marsha Medina, said in the announcement that the acquisition will offer Pride the scale it needs to continue growing its brand and offerings.