Motiva Sites Move to PMG Portfolio

Published in CSP Daily News

46 Shell stations in northern New Jersey change hands

WASHINGTON -- PMG New Jersey LLC, a newly formed entity created by Petroleum Marketing Group Inc., has closed on the acquisition of 46 Shell gas stations owned by Shell subsidiary Motiva Enterprises LLC. All the sites are located in northern New Jersey.

As reported in a Morgan Keegan/CSP Daily News Flash yesterday, Severna Park, Md.-based Petroleum Marketing Group is a large Shell, Exxon, Mobil, Sunoco, Gulf and CITGO-branded jobbership and a leading regional distributor of petroleum products and services in the mid-Atlantic and Northeast regions of the United States.

The company owns, operates or supplies more than 300 gas stations in the regions.

"We are excited that we could help facilitate this transaction in what is still a rather challenging lending environment," said John Sartory, managing director and principal of Petroleum Capital & Real Estate LLC, acted as the financial advisor to PMG New Jersey.

He added, "This was a rare opportunity for our client to acquire a large number of premium real-estate sites in New Jersey, an attractive trade area with high barriers to entry. In addition, our firm was able to structure the transaction in a manner that allowed our client to secure all of the senior secured credit facilities required to close on the transaction from a single regional lender. As a result, PMG New Jersey was able to avoid the costly and time consuming loan syndication process."

This is the second major acquisition in which Petroleum Capital & Real Estate acted as the exclusive financial advisor to the Petroleum Marketing Group. As part of the ongoing transition of Shell and Motiva gas stations from direct- to wholesaler-supplied operations, Motiva sold 52 Shell-branded sites to PMG Northern Virginia LLC in October 2009 (click here for previous CSP Daily Newscoverage).

Petroleum Capital & Real Estate also represented Petroleum Marketing Group on a deal for it to acquire an undisclosed number of Exxon stations in New Jersey. That deal has not yet closed, Petroleum Capital & Real Estate managing director John C. Flippen Jr. told CSP Daily News (click here for previous coverage).

Houston-based Shell Oil Products US, a subsidiary of Shell Oil Co., is a leader in the refining, transportation and marketing of fuels, and has a network of approximately 6,100 branded gas stations in the western United States. Shell Oil Co. is an affiliate of the Shell Group. Shell Oil is a 50% owner of Motiva, along with Saudi Refining Inc. Motiva refines and markets branded products through approximately 8,200 Shell-branded stations in the eastern and southern United States.

West Friendship, Md.-based Petroleum Capital & Real Estate provides consulting, merger and acquisition and financial advisory services for clients exclusively in the retail petroleum industry.