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ARKO Petroleum Corp. Completes Acquisition of the Business of U.S. Petroleum Partners, LLC, Expected to Contribute Approximately $30 Million of Annualized Adjusted EBITDA

APCARKO
  • ARKO Petroleum Corp. completed its acquisition of U.S. Petroleum Partners, LLC on November 10, 2026, expanding its presence in the Great Lakes region.
  • The deal adds approximately 280 million gallons of annual fuel volume across 400 wholesale locations, representing a 14% increase in APC's trailing twelve-month fuel volumes.
  • APC's wholesale network now totals approximately 2,500 locations following the acquisition.
  • The acquired assets include fuel terminals in Novi, Michigan, and Toledo, Ohio, connected to the Buckeye Pipeline system, enhancing vertical integration.
  • The transaction includes a fleet of vehicles transporting over 80% of USPP's distributed fuel volumes, improving transportation capabilities.
  • The acquisition is expected to contribute approximately $30 million of annualized Adjusted EBITDA and enhance Discretionary Cash Flow generation.
  • APC paid approximately $200 million in cash funded by existing credit lines, plus the value of inventory, at closing.
  • Approximately 2.0 million shares of APC Class A common stock, valued at roughly $30 million, were issued to sellers to be held in escrow.
  • Escrow shares are subject to adjustment based on USPP achieving EBITDA targets through December 31, 2027, with potential for additional cash or stock payouts.
  • Pro forma Net Debt to Adjusted EBITDA is expected to range between 3.0x and 3.5x, remaining within APC's target leverage range of 3.0x to 4.0x.
  • The strategic benefits include diversifying earnings through infrastructure assets, strengthening fuel supplier relationships, and creating a platform for further operational efficiency.
Company
ARKO Petroleum Corp.
Keywords
Nasdaq: APC, ARKO Petroleum Corp.