Business Context and Reporting Period
CrossAmerica Partners LP filed a Form 8-K on November 28, 2017, reporting the completion of an asset acquisition. The transaction was executed pursuant to an Asset Purchase Agreement dated August 4, 2017.
Key Financial Metrics and Transaction Details
- Transaction Type: Acquisition of assets from Jet-Pep, Inc.
- Total Consideration: $72 million in cash, plus working capital and closing costs.
- Financing: Funded under the Partnership's existing credit facility.
- Assets Acquired: 101 commission-operated retail sites, comprising 92 fee simple sites, 5 leased real property sites, and 4 independent commission accounts.
- Historical Volume: The acquired locations sold approximately 91 million gallons of unbranded fuel in 2016.
Material Changes
The filing reports a material expansion of the company's retail footprint through the addition of 101 sites. No comparative financial metrics (revenue, profit, or margins) for the prior period are provided in this specific filing as it focuses solely on the transaction completion.
Guidance, Outlook, and Contingencies
CrossAmerica intends to file historical financial statements for Jet-Pep, Inc. and pro forma financial information in an amendment (Form 8-K/A) within 71 calendar days of the filing date. The filing does not contain updated forward-looking guidance or management commentary regarding future performance beyond the acquisition details.
Investor Verification Checklist
- Verify the impact of the $72 million cash outflow on the company's liquidity and credit facility availability.
- Review the upcoming Form 8-K/A for historical financials of Jet-Pep, Inc. to assess the quality of the acquired assets.
- Monitor the pro forma financial information to understand the accretive or dilutive effect of the acquisition on earnings.
- Confirm the integration timeline and operational status of the 101 newly acquired retail sites.