Hudson-based SSG sold to national firm -- 31 properties sell for $48.5 million
SSG Corporation, founded and owned by local businessman Burt Nordstrand, has been sold to CrossAmerica Partners, a leading wholesale distributor of motor fuels and real estate used in the retail distribution of motor fuels. CrossAmerica GP LLC, is a wholly owned subsidiary of CST Brands, Inc., one of the largest independent retailers of motor fuels and convenience merchandise in North America. It is also the same company that purchased Hudson-based Erickson Oil (Freedom) in early 2015.
In announcing the transaction, CrossAmerica said it has entered into an agreement to acquire 31 franchise Holiday stores located in Wisconsin and Minnesota that are being sold by SSG Corporation for $48.5 million.
Of the 31 SSG-operated stores, 28 are located in Wisconsin and three in Minnesota. Wisconsin stores include three in Hudson, one in Ellsworth, New Richmond, Roberts, Hammond, Prescott and Amery; Minnesota stores include one in Hastings. For the 12-month period ending Aug. 31, 2015, the sites sold approximately 26.5 million gallons of motor fuel and had approximately $44 million in inside sales.
"We look forward to working together with CrossAmerica on finalizing this transaction" said Nordstrand. "The strength of SSG has always been our employees and we are grateful to them for their many years of loyal service. SSG was the first Self Service gasoline company in our area and operated under the company-owned "Auto Stop" brand for the first 32 years and under the "Holiday" franchise brand for the last 13 years."
CrossAmerica President Jeremy Bergeron was also pleased with the deal
"We are delighted to acquire this great network of stores and become a Holiday Station stores franchisee," said Bergeron. "This acquisition complements our acquisition of Erickson Oil Products made in early 2015 and further solidifies CrossAmerica's commitment to the Minnesota and Wisconsin region."
The acquisition is subject to customary conditions to closing and is expected to close in the first quarter of 2016.
Formed in 2012, CrossAmerica Partners LP is a distributor of branded and unbranded petroleum for motor vehicles in the United States and distributes fuel to more than 1,200 locations and owns or leases more than 800 sites.
With a geographic footprint covering 25 states, the Partnership has well-established relationships with several major oil brands, including ExxonMobil, BP, Shell, Chevron, Sunoco, Valero, Gulf, Citgo and Marathon. CrossAmerica Partners ranks as one of ExxonMobil's largest distributors by fuel volume in the United States and in the top 10 for additional brands. For additional information go to www.crossamericapartners.com.