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TAYLOR, Mich. -- Atlas Oil Co. today announced it will sell its BP-branded assets in Chicago and Northwest Indiana to Lehigh Gas Partners LP. Included in the deal are 55 wholesale supply contracts, 11 fee or leasehold sites, two commission contracts and certain other assets.
Allentown, Pa.-based Lehigh Gas will pay $38.5 million for the transaction, which is expected to close this quarter. The buyer stated it will fund the transaction via its credit facility.
Taylor, Mich.-based fuels supplier Atlas Oil said the move is the proper decision. "Atlas and BP have had a strong relationship and have been partners for a number of years," said Michael Evans, president and chief operating officer of Atlas Oil. "After careful analysis, we determined this to be the right decision. Atlas Oil remains committed to the growth of its fuel distribution and supply management businesses."
The 55 wholesale supply contracts have a weighted average term remaining of approximately 15 years. The fee or leasehold sites are all currently leased to third-party commission agents.
"We are pleased to enter the Chicago market and expand our relationship with BP," said Lehigh Gas Chairman and CEO Joseph Topper. "The transaction enables us to acquire quality assets and provides us immediate scale in the region and a base for us to support future growth."
Lehigh Gas Partners LP, a master-limited partnership, owns, leases or supplies fuel to 812 gas stations, with the highest concentration in its home state of Pennsylvania.