ARKO Corp. Subsidiary GPM Investments Secures $1.15 Billion Real Property Commitment from Oak Street Real Estate Capital

Rhea-AI Summary

ARKO Corp. has extended its $1 billion agreement with Oak Street Real Estate Capital for another year, increasing total available funds to $1.15 billion. This agreement allows Oak Street to purchase and lease real estate, including a recent $130 million acquisition of Quarles Petroleum assets. With 1,406 convenience stores and a growing portfolio, ARKO continues its strategic acquisition model, marking its 21st acquisition in 2022. The company emphasizes strong partnerships and flexibility in deal-making, enhancing its market position and operational growth.

Positive

• Extension of agreement increases available funding to $1.15 billion.
• Continuing strategic growth with 21 acquisitions since 2011.
• Recent acquisition of Quarles Petroleum indicates robust expansion.

Negative

• None.

Agreement shows strength of GPM’s successful growth strategy

RICHMOND, Va., April 13, 2022 (GLOBE NEWSWIRE) -- GPM Investments, LLC, a wholly owned subsidiary of ARKO Corp. (Nasdaq: ARKO), extended its existing $1 billion agreement with Chicago-based real estate investment firm Oak Street Real Estate Capital, a division of Blue Owl Capital ("Oak Street") by one-year, and the extended agreement provides aggregate availability in the amount of $1.15 billion during the second year of the term.

ARKO and Oak Street extended by one year an agreement originally signed in May 2021, in which Oak Street agreed to purchase and lease real estate to GPM or its affiliates. In addition to the $253 million of real estate purchased by Oak Street under the agreement, and the $130 million of real estate expected to be purchased in the recently announced acquisition of the fleet fueling card lock and distribution assets of Quarles Petroleum, Oak Street has committed up to $1.15 billion for the second year of the term, subject to the terms and conditions of the agreement.

GPM is one of the largest convenience store chains in the United States, having executed twenty acquisitions since 2011, with 1,406 convenience stores in a unique community of brands and 1,628 wholesale sites that employ over 11,000 people in 33 states and the District of Columbia. The company recently announced its planned acquisition of Quarles Petroleum, marking its 21^st acquisition, which is currently expected to close in the second quarter of 2022.

“Working with Oak Street has given us significant dealmaking flexibility,” said Arie Kotler, President and Chief Executive Officer of ARKO. “We plan to continue our highly successful acquisition model with even more creative solutions for sellers, who we believe recognize that we are an acquirer of choice because of our proven strategy of preserving strong local brands while closing deals at highly attractive multiples.”

“We have had a great experience with ARKO and are excited to enter phase two of our partnership with them,” said Marc Zahr, Founder and President of Oak Street.

To learn more about GPM stores, visit: www.gpminvestments.com. To learn more about ARKO, visit: www.arkocorp.com.

About ARKO Corp. and GPM Investments, LLC¹

ARKO Corp. (Nasdaq: ARKO) owns 100% of GPM Investments, LLC and is one of the largest operators of convenience stores in the United States. Based in Richmond, VA, our highly recognizable family of community brands offers delicious prepared foods, beer, snacks, candy, hot and cold beverages, and multiple popular quick serve restaurant brands. Our high value fas REWARDS® loyalty program offers exclusive savings on merchandise and gas. We operate in three reportable segments: retail, which includes convenience stores selling fuel products and other merchandise to retail customers; wholesale, which supplies fuel to independent dealers and consignment agents; and GPM Petroleum, which sells and supplies fuel to our retail and wholesale sites.

About Blue Owl Capital Inc:

Blue Owl is a global alternative asset manager with $94.5 billion in assets under management as of December 31, 2021. Anchored by a strong permanent capital base, the firm deploys private capital across Direct Lending, GP Solutions and Real Estate strategies on behalf of Institutional and Private Wealth clients. Blue Owl's flexible, consultative approach helps position the firm as a partner of choice for businesses seeking capital solutions to support their sustained growth. The firm's management team is comprised of seasoned investment professionals averaging more than 25 years of experience building alternative investment businesses. Blue Owl employs over 350 people across nine offices globally.

Oak Street, a division of Blue Owl, is a real estate investment firm focused on acquiring properties net-leased to investment grade and creditworthy tenants. Oak Street’s investment funds currently have $15 billion of discretionary acquisition capacity and co-investment capacity to be deployed into sale-leasebacks and build-to suits. Oak Street specializes in providing flexible capital solutions to a variety of organizations including corporations, healthcare systems, universities and government entities.

For more information, please visit us at www.blueowl.com.

Forward-Looking Statements:

This document includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may address, among other things, our expected financial and operational results and the related assumptions underlying our expected results. These forward-looking statements are distinguished by use of words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “will,” “would” the negative of these terms, and similar references to future periods. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to, among other things, changes in economic, business and market conditions; our ability to maintain the listing of our common stock and warrants on the Nasdaq Stock Market; changes in our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects and plans; expansion plans and opportunities; changes in the markets in which we compete; changes in applicable laws or regulations, including those relating to environmental matters; market conditions and global and economic factors beyond our control, including the potential adverse effects of the ongoing global coronavirus (COVID-19) pandemic on capital markets, general economic conditions, unemployment and our liquidity, operations and personnel; and the outcome of any known or unknown litigation and regulatory proceedings. Detailed information about these factors and additional important factors can be found in the documents that ARKO files with the Securities and Exchange Commission, such as Form 10-K, Form 10-Q and Form 8-K. Forward-looking statements speak only as of the date the statements were made. ARKO assumes no obligation to update forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information, except as required by applicable law.

Media Contact
Andrew Petro
Matter on behalf of ARKO
(978) 518-4531
apetro@matternow.com

Investor Contact:
Ross Parman
ARKO Corp.
investors@gpminvestments.com

FAQ

What recent agreement did ARKO Corp. extend with Oak Street Real Estate Capital?

ARKO Corp. extended its existing $1 billion agreement with Oak Street Real Estate Capital by one year, increasing total available funds to $1.15 billion.

How many convenience stores does ARKO operate?

ARKO operates 1,406 convenience stores across the United States.

What is the significance of ARKO's acquisition of Quarles Petroleum?

The acquisition of Quarles Petroleum is significant as it marks ARKO's 21st acquisition, further expanding its portfolio.

What financial terms were included in the extended agreement with Oak Street?

The extended agreement with Oak Street provides aggregate availability of $1.15 billion for the second year of the term.

When is the expected close date for ARKO's acquisition of Quarles Petroleum?

The acquisition of Quarles Petroleum is expected to close in the second quarter of 2022.