TORONTO May 25 Global Partners LP (GLP.N) said
on Tuesday it signed an agreement with Exxon Mobil Corp (XOM.N)
to buy 190 Mobil-branded gas stations in three New England
Exxon Mobil, like several other large refiners, has said
that it wants to exit retail operations.
The sales price is $200 million, with the assumption of
certain environmental liabilities, said Eric Slifka, Global
Partners' president and chief executive, calling the assets
best in class.
Global also has agreed to supply contracts for 31
additional independently operated gas stations, also carrying
the Mobil brand name, also in Massachusetts, Rhode Island and
Of the 190 stations, 42 are company operated and 148 are
Subject to approval of its independent directors, Global
intends to negotiate a contract for the management of the
company-operated stations and the dealer relationships with
Alliance Energy LLC, an experienced retail operator. Alliance
is approximately 95 percent owned by members of the Slifka
family, who also own the General Partner of the Partnership.
Slifka said that Global Partners storage has almost doubled
since 2005 and now stands at 10.2 million barrels, with most
storage dedicated to gasoline.
Global expects the deal to be accretive in first 12 months
of operation, and factors in $1.5 million a year for
environmental remediation. The deal is expected to close by the
end of the year.