Marathon to Divest 166 stores

Marathon Oil Corp. has signed a non-binding Letter of Intent with ACON Investments LLC, NTR Partners LLC and TPG Capital, L.P. to sell most of its Minnesota downstream assets.  

The assets include the 74,000 barrel per day St. Paul Park refinery and associated terminal, 166 SuperAmerica convenience stores along with the SuperMom’s Bakery (a baked goods supply operation), SuperAmerica Franchising LLC, and interests in pipeline assets in Minnesota and associated inventories.  

The estimated overall transaction value is expected to be in excess of $800 million, including inventories at current market values. Marathon may also receive additional contingent payments over a number of years. Under the Letter of Intent, the investment group will have a period of exclusivity to work towards negotiation of definitive agreements.

Marathon anticipates closing to occur within the late third or fourth quarter. The sale of the assets is subject to, among other things, conclusion of definitive agreements and Marathon board approval. The company plans to provide services to support the operation of the facilities during a transition period following a successful closing of the transaction.

The proposed sale is part of Marathon’s ongoing effort to ensure its asset portfolio is strategically aligned with its business plans, while maintaining its position in the market. Marathon expects to continue to be one of the largest suppliers of finished products in the Midwest and Southeast through its remaining refining, distribution and marketing system.

The transaction would not affect Marathon’s Brand marketing operations in Minnesota. Marathon plans to continue to provide reliable refined product supply to these operations in accordance with the agreements with its Marathon Brand customers.  

Marathon’s financial advisor for the transaction is Morgan Stanley.

 

 

 

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