RICHMOND, Va.—ARKO Corp. announced that it has completed its previously announced acquisition of the retail and fleet fueling assets of WTG Fuels Holdings, the owner of Uncle’s Convenience Stores and GASCARD fleet fueling operations. This transaction marks the 24th acquisition for ARKO since 2013 and the second completed acquisition in the first six months of 2023.
“The WTG Acquisition fits squarely in our long-term growth strategy and our commitment to create value for our stockholders,” said Arie Kotler, chairman, president and chief executive officer of ARKO. “We believe we will add significant value to the WTG Business by leveraging our excellent integration capabilities, and we believe that the WTG Business will benefit considerably from our merchandizing and marketing initiatives. We expect that the WTG Business’ robust diesel business will advance our fuel strategy to maximize fuel gross profit dollars..”
Founded in 1976, WTG is a leading Texas convenience store operator, with 24 company-operated Uncle’s Convenience Stores across western Texas.
As part of the transaction, ARKO has also acquired 68 proprietary GASCARD-branded fleet fueling cardlock sites and 43 private cardlock sites, one of the largest fleet fueling operations in West Texas. Nearly 75% of fuel sales by volume at the cardlock locations have been diesel. In addition, the WTG Business issues fuel cards that provide customers with access to a nationwide network of fueling sites. ARKO’s fleet fueling segment expects to leverage its leading marketing and operations knowledge to manage fleet fueling sites and create value for customers. The WTG acquisition also includes three land parcels and nine independent dealer locations.
ARKO has grown from 300 stores to approximately 3,700 locations comprised of approximately 1,550 company-operated stores, more than 1,800 independent dealer sites to which it supplies fuel and approximately 300 unmanned fleet fueling locations.
The total purchase price for the WTG Acquisition was approximately $140.2 million plus the value of inventory at closing.
ARKO also announced it was named for the second consecutive year to the 2023 Fortune 500 list, which ranks the largest companies by total revenue in the United States. ARKO ranked at No. 460, moving up 38 places on the list from its debut in 2022 at No. 498.
“ARKO had an excellent year in 2022 and a strong start to 2023, so being named to the Fortune 500 for the second consecutive year once again confirms our position as a leader in the convenience store industry,” said Kotler. “This is the result of ARKO’s unwavering commitment to create value for our stockholders and underscores the success we have achieved through strategic initiatives like enhancing our loyalty program, expanding marketing and merchandising efforts and executing our long-term growth strategy through accretive acquisitions.”