Arko Petroleum agrees to buy U.S. Petroleum Partners business for USD 205 million plus inventory

Consideration includes about USD 205 million cash at closing, inventory costs, and USD 30 million of Class A stock held in escrow tied to EBITDA targets.

The transaction is expected to contribute about USD 30 million of annual adjusted EBITDA; pro forma net leverage seen at 3x to 3.5x.

Arko Petroleum agreed to buy U.S. Petroleum Partners, a Great Lakes fuel supply and distribution platform with about 280 million gallons of annual volumes.

The deal adds more than 400 wholesale locations, lifting Arko’s network to over 2,500 sites; expected to raise annual volumes about 14%.

Assets include fuel terminals in Novi, Michigan, and Toledo, Ohio, tied to the Buckeye Pipeline, plus a transport fleet moving over 80% of volumes.