Arko Corp. buys Quarles Petroleum
Richmond-based convenience store company pays $170M
Richmond-based Fortune 500 convenience retail holding company Arko Corp. has acquired Fredericksburg-based Quarles Petroleum for $170 million, Arko announced Monday.
Arko Corp. debuted this year on the Fortune 500 list at No. 498 and is the parent company of Richmond-based GPM Investments LLC, one of the nation’s largest convenience store chains.
Quarles Petroleum is one of the largest fleet-fueling cardlock operators on the East Coast. The deal includes 121 proprietary cardlock sites, management of 63 third-party cardlock sites for fleet fueling operations, 46 independent dealer locations and a small transportation fleet. The acquisition will add 160 million gallons of gas to the 2 billion gallons Arko sells annually.
Cardlock fueling stations allow businesses to obtain a card for each driver or vehicle and then provide 24-hour, automated access to the fueling station by using the card.
“We plan to continue to pursue acquisitions like the Quarles acquisition as we focus on strategic growth that generates long-term shareholder value,” Arko President and CEO Arie Kotler said in a statement. “The acquired Quarles assets comprise a complementary business that has operated continuously for more than 80 years, and we believe we can grow and expand the company’s fleet fueling platform and continue to provide best-in-class fuel services and solutions to our customers. In addition, nearly 100 Quarles employees will be retained and become employees of GPM. They are accomplished operators, and we welcome them into our family of community brands.”
The Quarles acquisition is Arko’s 21st purchase since 2013. Quarles has locations in Virginia, Maryland, North Carolina, Pennsylvania and Washington, D.C., along with management of third-party fueling sites, and the marketing of fuel cards that give customers access to a nationwide network of fueling sites.
Arko expects the acquisition to add $17.5 million of adjusted EBITDA after paying rent of $7.8 million to Oak Street Real Estate Capital, a division of Blue Owl Capital.