Global Partners to buy Alliance Energy in deal valued at $296 million

Global Partners LP said it has agreed to buy 100 percent of the membership interests of Alliance Energy LLC in a transaction with an enterprise value of $296 million.

Global Partners, a public company based in Waltham, owns, controls, or has access to one of the largest terminal networks of refined petroleum products in the Northeast.

Also based in Waltham, Alliance is a privately owned gasoline distributor that also operates 542 gasoline stations in New England, New York, New Jersey, and Pennsylvania. The stations operate under such brands as Mobil, Exxon, Shell, Sunoco, Gulf, and CITGO.

Both Global Partners and Alliance were founded by members of the Slifka family, and Alliance manages the Mobil gas stations in the Global Partners portfolio.

Advertisement

When the deal is completed, something expected to happen in the first quarter of 2012, Global Partners said its portfolio will include more than 750 gas stations, the company said in a press release.

The transaction “further establishes Global Partners as one of the leading gasoline wholesalers, distributors, and operators in the Northeast,’’ Eric Slifka, president and chief executive of Global Partners, said in a statement.

Upon closing, Alliance president Andrew Slifka will join Global Partners as president of the partnership’s retail business. In addition, he will become a member of the board of Global GP LLC.

As part of the transaction, Global Partners will issue about 5.9 million limited partner units to Alliance’s owners and assume long-term debt of about $180 million. Based on Global Partners’ Nov. 18 closing price of $19.89 per unit, the transaction has an enterprise value of about $296 million, Global Partners said.

Jump To Comments