Arko closes Pride convenience stores deal
Acquisition brings Arko to Massachusetts
Arko Corp., a Fortune 500 holding company for Henrico County-based convenience store chain GPM Investments LLC, has closed on its acquisition of Pride Convenience Holdings LLC, which operates 30 Pride convenience stores in Massachusetts and one in Connecticut.
The deal was first announced in October.
The $230 million acquisition, plus the value of inventory, brings Arko to its 34th state and is the company’s 22nd acquisition since 2013.
“Arko’s primary focus is creating long-term shareholder value by growing our core convenience store business,” Arko Chairman, President and CEO Arie Kotler said in a statement.“We believe we can enhance the value of Pride’s stores and strong regional brand through our operational and merchandising abilities and scale. We welcome Pride’s employees to our family of community brands and look forward to working together to enhance the business and provide value for customers.”
Arko financed $30 million of the cash consideration and the remaining $202 million was funded by Oak Street, a division of Blue Owl Capital as part of a $1.15 billion agreement. Arko leases the real estate assets from Oak Street.
Pride has 31 convenience stores, including one that broke ground in July, and sold 74.2 million gallons of gas in fiscal year 2021. Its network of electric chargers increases the charger count in Arko’s footprint.
On Wednesday, Arko announced that it agreed to acquire the retail, wholesale and fleet fueling assets of Texas-based WTG Fuels Holdings LLC, the owner of Uncle’s convenience stores and Gascard fleet fueling operations. The $140.4 million acquisition, plus the value of inventory, introduces Arko to Texas.