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Global Partners to buy 190 ExxonMobil gas stations
May 25, 2010 / 2:35 PM / in 7 years

Global Partners to buy 190 ExxonMobil gas stations

TORONTO, May 25 (Reuters) - 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 States.

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 New Hampshire.

Of the 190 stations, 42 are company operated and 148 are dealer operated.

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.

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