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Refuel owner checks out $1.5-billion-plus sale of convenience-store operator, sources say

The privateequity owner of Refuel is checking out tactical choices consisting of a possible sale that might value the U.S. conveniencestore operator at more than $ 1.5 billion consisting of financial obligation, individuals familiar with the matter stated on Friday.

The move comes as a wave of debt consolidation rolls through the convenience-store industry.

Some store operators are looking to broaden geographically, even as the sector manages slowing development. Inflation has required shoppers to cut down investing in groceries and staples.

Private-equity company First Reserve, which acquired Refuel in 2019, is in talks with investment lenders to introduce a sale process for the convenience-store operator in the first half of 2025, the sources said, asking for anonymity as the conversations are private. Prospective purchasers include other store operators and buyout firms, the sources stated.

Based on equivalent transactions in the sector, Refuel might command an appraisal equivalent to about 13 times its core annual earnings of approximately $120 million, the sources said, cautioning a. deal is not ensured and First Reserve might keep business.

First Reserve and Refuel decreased to comment.

Charleston, South Carolina-based Refuel owns around 230. convenience stores and filling station, generally in North Carolina. and South Carolina as well as other states, consisting of. Mississippi, Arkansas and Texas, according to its website.

Under the ownership of First Reserve, which generally focuses. on buying the energy sector, Refuel has actually grown through. acquisitions of other shop operators and family-owned. corner store.

In January 2022, First Reserve said it had moved its Refuel. investment into a continuation fund, which allows buyout companies. to continue owning a possession beyond its standard life expectancy. This structure also permitted Refuel to draw in funding from new. financiers.

Refuel's considerations on a possible sale mirror moves from. other store operators.

Reuters reported in September that Arko was looking for. to shed its convenience-store operations in a deal that might be. valued at around $2 billion. This year, Sunoco agreed to. sell 204 stores to 7-Eleven in an offer worth $1 billion.

In July, Casey's General Stores struck a. $ 1.15-billion offer to purchase Fikes Wholesale, the owner of CEFCO. corner store, to broaden in Texas.

(source: Reuters)