Business
ARKO to Acquire Fleet Fueling Cardlock and Fuel Distribution Business of Quarles Petroleum
RICHMOND, Va., Feb. 23, 2022 (GLOBE NEWSWIRE) -- ARKO Corp. (Nasdaq: ARKO), one of the largest convenience store operators and petroleum wholesalers in the
About this update from Arko Corp.
[{"type":"text","content":"RICHMOND, Va., Feb. 23, 2022 (GLOBE NEWSWIRE) -- ARKO Corp. (Nasdaq: ARKO), one of the largest convenience store operators and petroleum wholesalers in the United States, announced today that GPM, a subsidiary of ARKO, has entered into an agreement with Quarles Petroleum Inc. (“Quarles”) for the acquisition of certain assets, including 121 branded and 64 contracted cardlock sites, which are strategically located unmanned fuel sites located on high-traffic corridors in the mid-Atlantic region, at which customers purchase fuel with fleet cards. Quarles is the largest fleet fueling cardlock operator on the U.S. east coast, with operations in Virginia, North Carolina, Maryland, Pennsylvania, and the District of Columbia. Quarles services a diverse base of commercial customers across multiple industries, meeting their fueling needs at easily accessible commercial sites. “We believe that this high-volume, 24/7/365 business in prime locations cannot be replicated today, and will drive strategic growth,” said Arie Kotler, President and CEO of ARKO. “The acquisition of these assets complements and expands our core wholesale strategy, adding a mature fleet fueling platform and boosting our supply and distribution capabilities within our 33 states and Washington, D.C. fuel supply footprint.” This acquisition is part of ARKO’s strategic focus on growth and generating long-term shareholder value with its dual convenience and wholesale platform. At the time of signing an asset purchase agreement, using estimated forward-looking non-GAAP measures, the Company expects that this acquisition will add approximately $17.3 million of adjusted EBITDA on an annualized basis after incremental rent of approximately $7.7 million to be paid to Oak Street Real Estate Capital, LLC, the private equity real estate firm who will fund approximately $130 million of the purchase price.1 The acquisition will add approximately 200 million gallons to the approximately 2 billion gallons ARKO currently sells annually. “Quarles has focused on building a commercial fleet fueling business with expanded site access, superior quality fuels and fleet card features that provide fleet operators with a comprehensive fueling solution,” said Paul Giambra, President and CEO of Quarles Petroleum. “Quarles and ARKO share a commitment to excellent service and providing the best poss...