Dive Brief:
- Convenience and fuel retailer Global Partners LP has agreed to acquire 25 liquid energy terminals in the U.S. from fuel refiner and distributor Motiva Enterprises for over $305 million, according to a Thursday announcement.
- The terminals are located along the Atlantic Coast, in the Southeast and in Texas. They’re expected to boost Global’s storage capacity by about 85%, to 18.3 million barrels, according to the announcement.
- Global, which currently owns or leases 24 liquid energy terminals throughout the U.S., will more than double its existing terminal footprint through the deal.
Dive Insight:
Global’s existing liquid terminals are located across the Northeast and in North Dakota and Oregon. Expanding this arm of its operation further down the Atlantic Coast and to the U.S. Gulf Coast allows it to reach areas with increasing population centers, Eric Slifka, president and CEO of Global Partners, said in the announcement.
The locations for these liquid terminals also have direct connections to a “critical network of docks and refined product pipelines,” according to the announcement.
“As a premier operator of terminals, wholesale distribution and retail marketing, we believe these terminals allow us to leverage our expertise in supply and give us a platform for growth in all aspects of our business,” Slifka said in the announcement.
The deal is subject to customary closing conditions, including regulatory approvals, and expected to close by the end of 2023. It also includes a 25-year minimum revenue commitment agreement between Global and Motiva.
This isn’t the first time this year Global has made an acquisition to reach a new market. Back in March, the company agreed to acquire 64 Timewise c-store and fueling facilities in Houston from Texas-based retailer Landmark Industries for an undisclosed amount.
Although Global previously supplied fuel to a few locations in the Houston market, this marked its first foray with c-stores in the region, as most of its company-operated retail sites are primarily in the Northeast and mid-Atlantic.
Waltham, Massachusetts-based Global Partners operates more than 350 convenience stores on the East Coast under brands including Alltown Fresh, XtraMart, Honey Farms and Jiffy Mart. The retailer also supplies fuel to about 1,700 locations in 12 states.
