GPM Investments Set to Enter Massachusetts

The ARKO Corp. subsidiary inks a $230M deal for Pride Convenience Holdings

GPM INVESTMENTS LLC, a wholly owned subsidiary of ARKO Corp., is acquiring Pride Convenience Holdings LLC, which operates 31 convenience stores in New England. The acquisition will expand ARKO’s c-store footprint into Massachusetts, making it the 34th state in which the company will operate.

Springfield, Mass.-based Pride operates many large-format stores, including two high-volume travel centers for long-haul truckers and two modern City Stop locations that cater to shorthaul truckers. Additionally, the company operates a centralized kitchen that provides fresh baked goods and food daily to all its stores.

The total purchase price for Pride is approximately $230 million, plus the value of inventory.

“Our agreement to acquire Pride highlights ARKO’s continued focus on creating longterm shareholder value by growing our core convenience store business,” said Arie Kotler, ARKO’s chairman, president and CEO. “We believe Pride stores are top-tier assets, with a focus on excellent customer service and a quality loyalty program, and we further believe that we can add value to these assets through our operational and merchandising abilities and scale. and working together to enhance the business,” he added.

The deal comes less than a year after Arclight Capital Partners purchased Pride from owner Bob Bolduc.

“Pride is a success because of its dedicated team members, and we are excited for the opportunity to join a growing, long-term focused convenience store company with the scale Pride needs to continue enhancing our excellent offerings and strong brand name,” said Marsha Medina, CEO of Pride.

At closing, Richmond, Va.-based ARKO intends to finance from its own sources approximately $28 million of the cash consideration plus the value of inventory and other closing adjustments. The remaining approximately $202 million is expected to be funded by Oak Street Real Estate Capital, a division of Blue Owl Capital, as part of the existing $1.15 billion agreement with ARKO. Oak Street is expected to acquire the real estate assets of Pride as part of the transaction, and ARKO will lease the real estate assets.

The closing of the transaction is subject to fulfillment of conditions precedent. There is no certainty that the transaction will close.