- ARKO Corp ARKO Subsidiary GPM has agreed to acquire Pride Convenience Holdings, LLC for aggregate Purchase price of $230 million plus inventory value.
- Pride Convenience operates 31 convenience stores with many large format stores, including two high-volume travel centers for long-distance drivers and two modern City Stop locations for short-haul drivers.
- This acquisition would expand ARKO’s convenience store presence into Massachusetts, making it the 34th state in which it will operate.
- In addition, Pride operates a central kitchen that supplies all Pride stores with fresh baked goods and groceries on a daily basis.
- ARKO’s agreement to acquire Pride and the recently announced agreement to acquire Transit Energy Group together will expand its base Convenience stores by around 15%.
- ARKO will pay $28 million in cash. The remaining $202 million will be funded by Oak Street Real Estate Capital, a division of Blue Owl Capital, as part of the existing $1.15 billion agreement with the company.
- The company had $297 million in cash and cash equivalents from June 30, 2022.
- ARKO would lease the real estate assets from Oak Street, which is expected to acquire Pride’s real estate assets as part of the transaction.
- The Company expects the acquisition to add $12.2 million in adjusted EBITDA on an annual basis, including synergies, after paying an additional $12.2 million in annual rent to Oak Street .
- Price promotion: ARKO shares are trading up 5.97% at $9.85 on the latest check Monday.
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