GPM to create new fuel distribution subsidiary

Convenience investor GPM Investments LLC has been given a major boost to grow its fuel distribution business after penning a $70 million private equity investment.

An energy sector investing company has agreed to a $70 million investment in GPM, paving the way to the creation of a new GPM wholly owned subsidiary which will focus on fuel distribution.

The subsidiary will purchase motor fuel from major oil companies and refineries and distribute fuel to GPM for a fixed margin, reported ConvenienceStore News.

"We are delighted to announce this equity raise from a strong partner for our newly operating subsidiary. GPM is now in an even stronger position to continue its acquisition growth strategy in the convenience store and wholesale fuel distribution sector," said Arie Kotler, president and CEO of GPM.

GPM has also secured a $110 million credit facility and an accordion with $110 million for the funding of future acquisitions.

The company, together with its subsidiaries, currently operates 665 company-op convenience stores and more than a 100 dealer locations.