ARKO Petroleum has entered into an agreement to acquire U.S. Petroleum Partners , a vertically integrated fuel supply and distribution platform serving customers throughout the Great Lakes region, in the US.
During ARKO Corp.'s second quarter earnings call on Aug. 7, Chairman, President and CEO Arie Kotler said the transaction represents an important next step for ARKO Petroleum as it works to expand its scale and create additional growth opportunities.
"We expect that the recently announced acquisition of the business of U.S. Petroleum Partners will be an important next step in APC's growth strategy, aimed at increasing scale while creating additional opportunities to enhance supplier economics, throughput and cash generation," Kotler said.
The strategic transaction is expected to expand ARKO Petroleum's platform by adding more than 400 dealer locations and increasing annual fuel volumes by approximately 280 million gallons, or approximately 14%, on a trailing 12-month basis. The acquisition is also expected to add approximately $30 million in annualized adjusted EBITDA.
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