GPM to Buy Transit Energy Group for $375 Million

The deal includes 150 Flash Market, Corner Market and Minit Mart c-stores in the Southeast and 200 dealer sites.

September 12, 2022

RICHMOND, Va.—Fast-growing ARKO Corp. announced today that its GPM Investments subsidiary has agreed to acquire from Transit Energy Group (TEG) roughly 150 convenience stores, fuel supply rights to about 200 dealers, commercial, government and industrial customers, plus Transit Energy Group’s bulk storage, distribution and transportation assets in the Southeastern U.S. The deal is valued at about $375 million and will grow ARKO’s portfolio to more than 1,530 convenience stores, the company said.

Owned by ECP, TEG is a large, privately held convenience store and wholesale fuel company in the Southeast that buys and invests in convenience stores with family histories and long-term presence in their communities. TEG has a record of growth in Alabama, Arkansas, Louisiana, Mississippi, Missouri, North Carolina, South Carolina and Tennessee, operating under the Flash Market banner, plus Corner Mart and Minit Mart.

“We believe this significant, accretive acquisition will drive strategic growth with the addition of an exceptional team, well-known stores and other assets to our Family of Community Brands,” said Arie Kotler, president, chairman and chief executive officer of ARKO. “A deal of this magnitude complements our core capabilities and will create long-term value for ARKO stockholders and valuable synergies given our existing footprint and proven strategy of adding value to strong local brands while keeping jobs in place.”

The deal is expected to expand the company’s retail footprint to Alabama and Mississippi and grow the Family of Community Brands in other regions, introducing more consumers to its high-value fas REWARDS® loyalty program. The acquisition also includes a network of about 200 dealer sites, expanding the company’s wholesale segment to over 1,800 sites.

Including retail and wholesale, ARKO expects the deal to add about 285 million gallons of fuel, the majority branded, to the approximately two billion gallons the company currently sells annually.

“ARKO will add value to our stores with their diverse offerings, and ably serve our many loyal retail and wholesale customers,” said Stephen Lattig, president and chief executive officer of TEG. “TEG would not be the success it is today if it were not for the dedication of its team members. We are excited that our team and company are joining a growing and dynamic organization,” he said.

In July, GPM closed its acquisition of 121 branded and 63 contracted cardlock sites and 46 independent dealer locations from Quarles Petroleum. It was GPM’s 21st acquisition in 10 years.

For more about ARKO and GPM's vision for the future, read “Tying it All Together” from the March 2021 issue of NACS Magazine.

At the 2022 NACS Show, don’t miss the “Mergers & Acquisitions Town Hall” on October 1, from 1:15 to 2:15 p.m. The session will start with presentations from both sides of a recent acquisition and will educate attendees on how to get started with the M&A process, what to expect and pitfalls to avoid along the way. The second half of the session will be an open town hall where attendees can ask questions of the acquirer and acquiree, as well as a broker, who helps make such acquisitions possible. The 2022 NACS Show will be held October 1-4 in Las Vegas. Register today!