Petroleum Capital and Real Estate, LLC, acting as the exclusive financial advisor to Heas Energy Services, LLC, announced that the company successfully entered into an agreement to acquire the long term leasehold and business interest in 10 gasoline service station and convenience store sites located in central Virginia. The gasoline service station and convenience store network is tightly clustered around the Lynchburg, Va., trade area. The chain consists of eight company operated convenience stores that operate under the Express Lane brand and two locations that operate under the commission agent class of trade. The retail network was previously operated by a local ExxonMobil petroleum distributor and convenience store operator.
“This transaction would likely not have happened without PetroCapRE’s extensive experience in facilitating and closing M&A transactions, especially in turbulent markets like we face today said Shiv Patel, the CEO of Heas Energy. I particularly valued PetroCapRE’s underwriting process, professional guidance in structuring an agreement that fit my long term business plans and developing strategies that lowered the overall cost of the transaction.”
All of the sites historically sold ExxonMobil branded motor fuel products, but each site was converted to the 76 motor fuel brand shortly after the transaction closed. Heas Energy also plans to quickly upgrade all of the network’s motor fuel dispensing facilities, reimage the sites to the 76 brand and convert a portion of the convenience store chain to the 7-Eleven brand over the next several years.
Patel is also the COO and a stakeholder in another well-established and growing Sunoco and ExxonMobil branded wholesale petroleum distributor, Sun Fuel, LLC. Sun Fuel operates an independently branded convenience store chain, Star Express, and is a Subway, Wendy’s and Huddle House franchisee. All of Sun Fuel’s retail sites and supply-only customers are located in the states of Virginia, South Carolina or North Carolina.
PetroCapRE exclusively represented Heas Energy and provided professional assistance in the initial financial due diligence process, acquisition modeling, lease and supply agreement negotiations and procurement of the other capital required to close the overall transaction.