PetroActive Services Coordinates the sale of Rocky Top Markets.

08.07.2013

  Lehigh Gas Purchases Tennessee Retail Chain 


Lehigh Gas Partners, the master limited partnership formed last year by roll-up
and real estate investor Joe Topper, just concluded another acquisition. The
company announced this afternoon that it has an asset purchase agreement with
Rocky Top Markets LLC and Rocky Top Properties and will purchase 30 stations,
assume or enter leases on four others and assume supply contracts for seven
other properties.

The total value of the deal is put at $36.9 million. Lehigh will pay $10.7
million at closing for one fee property site, four leasehold sites, and seven
third-party supply contracts and enter into a master lease for the remaining 29
stations. On or after the two-year anniversary date of this agreement (Aug. 1,
2015) Lehigh will purchase the 29 stations for $26.2 million, representing the
balance of the purchase price.

The deal gives Lehigh access to a new region, since all Rocky Top sites are
located in or around the Knoxville, Tenn., region and along Interstate 40 and I-
75. All of the stations combined sold about 34.1 million gallons of motor fuel
last year and 31 of the sites are branded Shell.

Lehigh chairman and CEO Joe Topper noted that the deal gives the company a solid
platform in the region and said they hope to grow their presence over time. A
closing on the deal is expected during the third quarter and the transaction
will be funded through the corporate credit facility. Mark Radosevich,
President

of PetroActive Real Estate Services LLC was the exclusive advisor to Rocky Top Markets

in this transaction.

Lehigh Gas made its debut as an MLP last year and owns or leases more than 500
sites. Most of the sites fly branded flags such as ExxonMobil, BP, Shell,
Chevron, Sunoco and Shell and the initial portfolio was concentrated in
northeastern states and Ohio. The company expanded into Florida last year.