Murphy USA announces plans to buy QuickChek Corp. for USD 645 million
Category: #business |   By Hrishikesh Kadam |   Date: 2020-12-16  | 
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Murphy USA announces plans to buy QuickChek Corp. for USD 645 million

In recent developments, Murphy USA Inc., an Arkansas-based organization that operates a chain of retail gas stations, has reportedly agreed to acquire QuickChek Corporation in an all cash transaction of USD 645 million. The purchase price involves expected tax benefits of worth USD 20 million, which makes the net purchase price USD 625 million.

For the record, QuickChek is a New Jersey-headquartered leading food service provider that operates a chain of convenience stores with 157 outlets across New Jersey and New York. The organization provides a variety of products including pharmacy, food, beverages and dairy. Moreover, the family-owned business also offers gasoline and fuel across 89 new stores.

Sources aware of the development cited that Murphy USA has obtained financing commitment from the Royal Bank of Canada. The deal is funded with cash as well as existing credit facilities and is scheduled to close by the first quarter of 2021, although it is subject to regulatory approvals and customary closing conditions.

The recent transaction supports Murphy’s updated capital allocation strategy which was revisited in October 2021. Sources confirmed that the acquisition is aimed at delivering sustained value to long-term shareholders, bolstering productivity enhancement initiatives and driving organic growth.

Andrew Clyde, CEO and President of Murphy USA, was reported saying that the company intends to leverage the deal in order to create direct synergies that will expand its enterprise scale and augment its distinctive capabilities in tobacco, fuel and consumer loyalty.

Reportedly, Davis Polk & Wardwell LLP will be appointed as legal advisors while RBC Capital Markets LLC will serve as exclusive financial advisors for Murphy USA. On the other hand, Weil, Gotshal & Manges LLP will act as QuickChek’s financial consultants and BofA Securities Inc. will be offering legal guidance to the company.

Source credits –

https://www.pymnts.com/news/partnerships-acquisitions/2020/murphy-agrees-645-million-dollar-acquisition-quickchek/

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About Author

Hrishikesh Kadam    

Hrishikesh Kadam

A graduate in electronics and telecommunication engineering, Hrishikesh Kadam has always found writing fascinating. Driven by a never-ending passion for content creation combined with a bit of experience in writing personal blogs, Hrishikesh blends his technical knowl...

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