HP SCF buys minority ownership stake in GPM

Harvest Partners SCF LP has acquired a minority ownership stake in Richmond, Virginia-based GPM Investments LLC, a convenience store company. The price of the transaction was $62.5 million. Raymond James provided financial advice to GPM on the transaction.


NEW YORK–(BUSINESS WIRE)–Harvest Partners SCF, LP (“HP SCF”), the non-control private equity strategy of Harvest Partners, LP, announced today it has completed the acquisition of a $62.5 million minority ownership position in GPM Investments, LLC (“GPM” or the “Company”), the largest privately-owned convenience store company in the United States. GPM is led by President and CEO Arie Kotler. The investment provided liquidity to existing owners. Terms of the transaction were not disclosed.

GPM, based in Richmond, VA, operates or supplies fuel to over 1,000 stores located throughout 18 states, making it the overall eighth largest convenience store chain in the country. The Company’s locations span the Midwest, Southeast, Mid-Atlantic, and Northeast United States. In addition to quality fuel, GPM’s convenience stores offer a variety of food, beverage and grocery items. The company employs over 7,500 people.

Jay Hegenbart, Senior Managing Director and Portfolio Manager for HP SCF, said, “We are thrilled to announce this proprietary investment in GPM. Arie has built an impressive business, and we are proud to add GPM to our portfolio of growing, founder-controlled companies.”

“We welcome HP SCF as an investment partner, and believe they will be a value-added resource,” said Mr. Kotler. “We are excited to work together with the HP SCF team to find and assess acquisition opportunities, as we continue towards our goal of building the top convenience store franchise in the United States.”

“Arie and his team have proven they are the leading consolidators in the convenience store sector,” added Sean Murphy, Managing Director at HP SCF. “With the strength of GPM’s platform, we feel the Company has significant prospects for further growth.”

Jay Hegenbart and Sean Murphy have joined the Board of Managers of GPM. Jerry Chan of HP SCF also worked on the investment.

Raymond James acted as a financial advisor to GPM. Latham & Watkins LLP served as legal counsel to HP SCF.

About Harvest Partners SCF
Harvest Partners SCF is a non-control private equity investor. HP SCF was founded in 2014 and is led by an experienced team of investment professionals who have, collectively, over 50 years of private equity investment experience. For business owners and entrepreneurs that need equity capital, HP SCF can provide flexible equity solutions and all of the resources and expertise of a private equity firm. Unlike traditional private equity, HP SCF allows entrepreneurs to retain control of their business in a structure that allows HP SCF to exit without forcing a future sale of the company. HP SCF is actively seeking new investment opportunities. Visit www.hp-scf.com for more information.

This announcement appears as a matter of record only. This does not constitute an offer to sell or a solicitation of an offer to purchase an interest in any current or future HP SCF or Harvest Partners, LP fund.

About GPM Investments, LLC
GPM Investments, LLC, together with its subsidiaries, is the largest privately-owned company in the convenience store channel of business. The company, based in Richmond, VA, operates or supplies fuel to over 1,000 stores located across 18 states. Their stores offer specialty coffee and cappuccino, innovative beverage programs, a large selection of grocery items, and many other products to suit the needs of every customer. One feature, setting many of their convenience stores apart, is their wide array of proprietary food offerings – ranging from fresh-made salads and sandwiches to healthy, grab-and-go meals. Visit www.gpminvestments.com to learn more about the Company’s stores.