Murphy USA Inc., the El Dorado convenience store and gasoline chain, expanded its national reach to 1,650 stores last week with the closing of its purchase of QuickChek Corp. of White House Station, New Jersey.
The $645 million acquisition was completed Jan. 29, the company announced, calling the addition of 157 high-performing stores in the Northeast a significant enhancement to its network.
“We are extremely excited to welcome nearly five thousand QuickChek employees to the Murphy USA family as we begin our joint value-creation journey together,” Murphy USA President and CEO Andrew Clyde said in a company statement.
“The future remains bright for the combined organization as we kick off the first 100 days of our integration plan,” Clyde added. Murphy will report its fourth-quarter 2020 financial results early Wednesday.
The company, which will now have more than 15,000 employees in 27 states, detailed the financing behind the deal, saying it had secured:
A $350 million five-year revolving credit facility
A $400 million secured term loan maturing in 2028 and priced at LIBOR plus 1.75%
$500 million worth of 3.750% senior unsecured notes maturing in 2031
The money went to pay for the acquisition, repay and terminate a prior term loan with $200 million outstanding, pay transaction costs and add cash to the balance sheet, the company said.
Also last week, Murphy USA and Core-Mark Holding Co. Inc. of Westlake, Texas, announced a new five-year supply contract for the chain’s stores that will keep Core-Mark as the primary wholesale distributor to Murphy USA, delivering more than 75% of merchandise sold.
“We are confident the Core-Mark team will continue to be an excellent strategic partner for Murphy USA, and we look forward to working together to achieve our mutual goals of profitable growth, efficient operations and superior execution for our stores and our customers,” Clyde said in a news release.
Scott E. McPherson, President and Chief Executive Officer of Core-Mark, said his company is committed to helping Murphy USA drave sales growth and margins, noting the chain’s “strategic focus on expanding their food and fresh offering.”