Puerto Rico not included in RaceTrac’s acquisition of Gulf operations
Georgia-based RaceTrac Inc. announced that its wholesale fuel supply and trading subsidiary, Metroplex Energy, has signed a definitive agreement with Gulf Oil L.P. to acquire Gulf Oil LLC, a brand that combines a wholesale fuel distribution network with petroleum products and services.
Though RaceTrac mentions in its published announcement that the agreement covers the U.S. mainland and its territories, including Puerto Rico, an official for Best Petroleum Corp., which has the rights to the Gulf brand on the island, said the deal excludes the local operations.
“We have a contract with Gulf Oil in Puerto Rico to distribute the brand, but we’re a separate entity, so this transaction does not apply to nor affects us,” said an executive of Best Petroleum Corp. on the condition of anonymity.
Best Petroleum oversees about 180 Gulf gas stations in operation across Puerto Rico.
“This exciting acquisition continues our history of growth, expanding RaceTrac’s family of companies to nearly 40 states across the continental U.S. and Puerto Rico,” RaceTrac CEO Max McBrayer was quoted as saying in the company’s press release. “Gulf is a trusted national brand that has been innovating and evolving for over 100 years, combining quality petroleum products with outstanding service. We look forward to continuing to expand the Gulf legacy.”
RaceTrac said the transaction is part of its “ongoing strategy to accelerate growth in its core business activities and drive enhanced operating efficiencies. The combination of Metroplex and Gulf creates a best-in-class fuel network with a leading presence in high-demand markets across the country and adds another renowned consumer-facing brand to RaceTrac’s family of companies.”
The transaction is subject to customary closing conditions, including approval under the Hart-Scott-Rodino Act, and is expected to be completed within 60 to 90 days. Financial terms have not been disclosed.
“The gasoline marketplace is undergoing historic and fundamental change and will continue to evolve rapidly. We are committed to remaining an industry leader and continuing to invest and grow our transportation fuels network,” said AJ Siccardi, president of Metroplex Energy.
“The combination of Gulf’s outstanding distributor network and RaceTrac’s history of driving retail fuel volume creates a tremendous opportunity to serve dealers and distributors in a manner that will make their sites successful fueling destinations of the future,” Siccardi added.
Wells Fargo Securities LLC served as exclusive financial adviser to RaceTrac and Metroplex Energy. Kilpatrick Townsend & Stockton LLP served as their legal adviser. Barclays served as exclusive financial adviser to Gulf Oil L.P. Latham & Watkins LLP served as its legal adviser.