September 29, 2014 [OPIS] - Susser Petroleum Partners has inked an agreement to acquire Aloha Petroleum, Hawaii's largest independent gasoline marketer for approximately $240 million, the master limited partnership said late Thursday.
The transaction is expected to close in the fourth quarter.
Aloha is also one of the largest c-store operators in Hawaii and has an extensive wholesale fuel distribution network and six terminals on the islands. The company currently markets through about 100 Shell, Aloha and Mahalo branded stations in Hawaii, about half of which are company operated.
The $240 million price tag of the deal is a base purchase price subject to a post-closing earn-out, certain closing adjustments and before transaction costs and expenses.
Susser Petroleum Partners CEO Bob Owens said in a statement that the price represents an approximate 7 times run-rate EBITDA multiple and that most of the cash flow is expected to constitute qualifying income.
Owens touted Hawaii as having an economy that’s growing faster than the overall U.S. economy. He also praised Aloha’s growth, profitability and operations as “impressive.”
“Aloha Petroleum will allow us to expand our current geographic footprint and extend our overall business capabilities into refined products terminals,” he said. “We see the integration of terminals, retail and wholesale operations within Aloha as a strong platform in Hawaii as well as a model for the expansion of our overall core business.”
