TOLEDO — Toledo’s fuel terminal on the Buckeye Pipeline system is part of a much bigger deal. ARKO Petroleum Corp. announced Nov. 11 that it has completed its acquisition of U.S. Petroleum Partners, adding about 400 wholesale locations and a Toledo terminal to one of North America’s largest wholesale fuel networks, the company said in its announcement via GlobeNewswire.
The acquisition, completed Nov. 10, is expected to add approximately 280 million gallons of annual fuel volume — about a 14% increase over ARKO Petroleum’s trailing twelve-month volumes — and contribute approximately $30 million of annualized Adjusted EBITDA, according to the company’s announcement via GlobeNewswire. The wholesale network grows to approximately 2,500 locations.
For northwest Ohio, the centerpiece is infrastructure. The acquired assets include two fuel terminals — in Toledo and in Novi, Michigan — both connected to the Buckeye Pipeline system, along with a fleet of vehicles that transports more than 80% of the acquired company’s distributed fuel volumes, according to the announcement. Terminals are long-lived assets: whoever owns them controls a chokepoint in how fuel reaches gas stations and commercial customers across the region.
“The closing of the USPP acquisition represents a meaningful step-up in APC’s scale, earnings power and long-term growth profile,” Arie Kotler, chairman, president and CEO of ARKO Petroleum Corp., said in the announcement quoted by GlobeNewswire. “USPP’s scale and infrastructure expand our presence across the fuel value chain.”
ARKO Petroleum paid approximately $200 million in cash at closing, plus the value of inventory, and issued about 2.0 million shares of its Class A common stock, valued at approximately $30 million and held in escrow subject to performance targets through Dec. 31, 2027, according to the announcement. The cash portion was funded through borrowings under the company’s existing lines of credit.
What happens next is integration: ARKO Petroleum says it will work with the U.S. Petroleum Partners team to increase terminal utilization, improve transportation efficiency and evaluate further growth from the acquired company’s existing pipeline of deals, according to the announcement via GlobeNewswire. For Toledo, the terminal’s new owner arrives publicly committed to pushing more volume through it.
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