US: Harvest Partners buys $62.5M stake in GPM Investments

Private equity firm Harvest Partners SCF, LP (HP SCF) has acquired a minority ownership worth $62.5 million in GPM Investments, the largest privately-owned convenience store company in the United States, according a company release.

The investment provided liquidity to existing owners of the Richmond, Virginia-based c-store supplier. Terms of the transaction were not disclosed.

GPM operates or supplies fuel to over 1,000 stores located across 18 states.

GPM brands such as Fas Mart, Shore Stop, Scotchman, Breadbox, Young's, Li'l Cricket, Village Pantry, Apple Market, Jiffi Stop, Next Door Store, and Admiral, spread across various locations in the Midwest, Southeast, Mid-Atlantic, and Northeast United States, offer food, beverage, and grocery items and employ more than 7,500 people.

“We are excited to work together with the HP SCF team to find and assess acquisition opportunities, as we continue towards our goal of building the top convenience store franchise in the United States,” said GPM President and CEO Arie Kotler.

Jay Hegenbart, Senior Managing Director and Portfolio Manager for HP SCF, said, “We are thrilled to announce this proprietary investment in GPM. Arie has built an impressive business, and we are proud to add GPM to our portfolio of growing, founder-controlled companies.”

Hegenbart and Sean Murphy, Managing Director at HP SCF, have joined GPM's Board of Managers.

Jerry Chan of HP SCF worked on the investment, while Raymond James served as financial advisor to GPM. Latham & Watkins LLP served as legal counsel to HP SCF.