Par Petroleum to acquire 33 Cenex Zip Trip convenience stores
Par Pacific Holdings, Inc. announced yesterday that a wholly owned subsidiary of Par Petroleum, LLC has entered into a definitive agreement to acquire 33 Cenex Zip Trip convenience stores from CHS Inc. for approximately USD 70 million plus the agreed value of inventory at closing.
Par Pacific expects the adjusted EBITDA from the acquired stores to be approximately USD 7.0 to USD 7.5 million in the first full year of operations. The transaction is expected to close in the first quarter of 2018, subject to customary closing conditions and other approvals.
“We are pleased to begin 2018 with a strategic acquisition to complement our Wyoming refining and logistics activities. We anticipate that this acquisition will be immediately accretive to our adjusted earnings per share and free cash flow and further diversify our earnings profile,” said William Pate, Par Pacific’s president and chief executive officer.
As part of the transaction, the parties will enter into a multi-year branded petroleum marketing agreement for the continued supply of Cenex-branded refined products to the Cenex Zip Trip stores. In addition, the parties also will enter into a multi-year supply agreement pursuant to which an affiliate of Par Pacific will supply refined products to CHS within the Rocky Mountain and Pacific Northwest markets.
Par Pacific Holdings, Inc., based in Houston, Texas, owns, manages and maintains interests in energy and infrastructure businesses. Par Pacific’s strategy is to identify, acquire and operate energy and infrastructure companies with attractive competitive positions. Par Pacific owns and operates one of the largest energy infrastructure networks in Hawaii with a 94,000-barrel per day (bpd refinery), a logistics network supplying the major islands of the state and 91 retail locations. In Wyoming, Par Pacific owns a refinery and associated logistics network in a niche market. Par Pacific also owns 42.3% of Laramie Energy, LLC, which has natural gas operations and assets concentrated in the Piceance Basin in Western Colorado.