Seeking growth, GPM enters into agreement with Chicago real estate firm
Richmond-based GPM is nation's seventh-largest convenience store chain
Richmond-based GPM Investments LLC, the nation’s seventh-largest convenience store chain, announced Tuesday that it has entered into a one-year agreement with Chicago-based Oak Street Real Estate Capital, which is committing up to $1 billion to purchase and lease to GPM real estate parcels associated with GPM’s acquisitions of convenience store chains and fueling stations.
A wholly owned subsidiary of Richmond-based publicly traded holding company Arko Corp., GPM will own and operate the related acquired businesses. Since 2011, GPM has made 18 major acquisitions, growing its holdings to include approximately 3,000 sites with more than 10,000 employees across 33 states and Washington, D.C. Its brands include Fas Mart and E-Z Mart.
“We believe that working with Oak Street will allow us to be a more attractive acquirer and add additional flexibility as we structure acquisitions,” GPM President and CEO Arie Kotler said in a statement. “We remain highly focused on our core acquisition model, and we expect that this partnership will enhance certainty of deal execution and, as a result, strengthen our growth as a company.”
“ARKO is a phenomenal company that is making the right strategic decisions,” said Marc Zahr, CEO and managing partner of Oak Street. “Their ability to utilize our balance sheet to fund their real estate footprint allows them to focus on their accretive growth and core operations. We are excited about what our partnership can do for their business and to help fuel their continued success.”