Speedway, a subsidiary of Marathon Petroleum Corporation (MPC) has signed a definitive agreement with Hess to acquire Hess Retail Holdings in the United States. This transaction incorporates all of Hess' retail locations, transport operations and shipper history on various pipelines, including approximately 40,000 bbl/d on Colonial Pipeline. The total consideration is US$2.874bn comprised of a cash purchase price of US$2.37b, an estimated US$230m of working capital and US$274m of capital leases. The acquisition is expected to close late in the third quarter of 2014, subject to customary closing conditions and regulatory approvals.
Hess is the largest operator of gasoline and convenience stores along the East Coast and the fifth largest in the US by number of company-operated sites with 1,256 stores located in 16 states. Speedway is the nation's fourth-largest convenience store chain by number of company-owned and -operated sites with approximately 1,480 stores located in nine states. The combined business will have 2013 pro forma revenues of more than US$27bn and 6.2 billion gallons of annual fuel sales (nearly 148,000 bbl).
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