CrossAmerica Announces the Closing of Acquisition of Assets of Community Service Stations

Rhea-AI Summary

CrossAmerica Partners LP (NYSE: CAPL) has successfully completed the acquisition of specific assets from Community Service Stations for $27.5 million plus working capital. This deal encompasses wholesale fuel supply contracts covering approximately 75 million gallons of fuel annually across 38 dealer-owned locations and 35 subjobber accounts in the Greater Boston area. The acquisition is financed through cash reserves and undrawn credit capacity, and is anticipated to enhance distributable cash flow for limited partners.

Positive

• Acquisition of wholesale fuel supply contracts expected to be immediately accretive to distributable cash flow.
• Expands market presence in the Greater Boston area with solid fuel supply agreements.

Negative

• None.

Allentown, PA , Nov. 10, 2022 (GLOBE NEWSWIRE) -- CrossAmerica Announces the Closing of Acquisition of Assets of Community Service Stations

• CrossAmerica acquires wholesale fuel supply portfolio in the Greater Boston area
• Approximately 75 million gallons across the supply contracts

ALLENTOWN, PA, November 10, 2022 – CrossAmerica Partners LP (NYSE: CAPL) announced today that it has completed the previously announced agreement to acquire certain assets of Community Service Stations for a purchase price of $27.5 million plus working capital .

The assets consist of wholesale fuel supply contracts to 38 dealer owned locations, 35 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 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.

About CrossAmerica Partners LP

CrossAmerica Partners is a leading wholesale distributor of motor fuels, convenience store operator and owner and lessor of real estate used in the retail distribution of motor fuels. Its general partner, CrossAmerica GP LLC, is indirectly owned and controlled by entities affiliated with Joseph V. Topper, Jr., the founder of CrossAmerica Partners and a member of the board of the general partner since 2012. Formed in 2012, CrossAmerica Partners LP is a distributor of branded and unbranded petroleum for motor vehicles in the United States and distributes fuel to approximately 1,750 locations and owns or leases approximately 1,150 sites. With a geographic footprint covering 34 states, the Partnership has well-established relationships with several major oil brands, including ExxonMobil, BP, Shell, Sunoco, Valero, Gulf, Citgo, Marathon and Phillips 66. CrossAmerica Partners ranks as one of ExxonMobil's largest distributors by fuel volume in the United States and in the top 10 for additional brands. For additional information, please visit www.crossamericapartners.com.

Cautionary Statement Regarding Forward-Looking Statements

Statements contained in this release that state the Partnership’s or management’s expectations or predictions of the future are forward-looking statements. The words “believe,” “expect,” “should,” “intends,” “estimates,” “target” and other similar expressions identify forward-looking statements. It is important to note that actual results could differ materially from those projected in such forward-looking statements. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see CrossAmerica’s Form 10-K or Forms 10-Q filed with the Securities and Exchange Commission, and available on CrossAmerica’s website at www.crossamericapartners.com. The Partnership undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise.

Contacts

Investors:
Randy Palmer, 210-742-8316
rpalmer@caplp.com

FAQ

What is the purchase price for CrossAmerica's acquisition from Community Service Stations?

The purchase price for the acquisition is $27.5 million plus working capital.

How much fuel will CrossAmerica supply after acquiring Community Service Stations?

CrossAmerica will supply approximately 75 million gallons of fuel annually.

What types of fuel brands are included in the supply contracts from the acquisition?

The supply contracts include fuel from brands such as Exxon Mobil, Shell, and Gulf.

When did CrossAmerica announce the closing of the acquisition?

CrossAmerica announced the closing of the acquisition on November 10, 2022.

How was the acquisition of assets financed?

The acquisition was financed using cash on hand and undrawn capacity from CrossAmerica's revolving credit facility.