GLP: Major Asset Acquisition

A Boston presenter spoke at our April forum about the high likelihood of Global Partners (NYSE: GLP, $20.79)acquiring distribution assets from majors. Two days ago the company announced it was buying all of Exxon's retail sites in Massachusetts, New Hampshire and Rhode Island. The company's CEO spoke of three reasons behind the purchase: the expansion of GLP's wholesale gasoline and diesel volume; a substantial new income source; and a higher efficiency in the company's wholesale supply operations. Globa will finance the purchase by borrowing under a revolving credit line or through a capital raise. The transaction will be completed by the end of the year, and will be accretive to earnings in the first 12 months of operation.