Throughput, the volume of fuel a distribution network moves over time, is about to rise sharply across the Great Lakes. Arko Petroleum has agreed to pay $205 million in cash, plus the cost of inventory, to acquire U.S. Petroleum Partners, a fuel supply and distribution company that moves about 280 million gallons annually to more than 400 wholesale locations.
What the deal includes
USPP, as U.S. Petroleum Partners is known, operates as a vertically integrated platform: it controls fuel sourcing and delivery under one corporate roof rather than contracting those functions separately. Two fuel terminals come with the acquisition, one in Novi, Michigan, and one in Toledo, Ohio. Both connect to the Buckeye Pipeline system. Transportation assets included in the deal currently carry more than 80% of USPP's fuel volumes.
What Arko Petroleum expects
The company projects the acquisition will contribute about $30 million in annual EBITDA. EBITDA, shorthand for earnings before interest, taxes, depreciation, and amortization, measures what a business generates from operations before financing costs are applied. Once the transaction closes, Arko Petroleum will serve more than 2,500 wholesale locations in total.
Arie Kotler, chairman, president, and CEO of both Arko Petroleum and Arko Corp., described the deal during Arko Corp.'s most recent earnings call as a step that expands scale in attractive markets and builds incremental fee-based earnings streams. He said the transaction is expected to close later this year and noted that Arko Petroleum, as a public company, gives the broader Arko organization a second platform for value creation while the parent company continues its retail work.
The retail side
Arko Corp. has been converting company-owned convenience stores to wholesale dealer sites since mid-2024 to reduce operating costs. Through the end of Q2 2026, 471 locations had gone through that conversion, including 21 transitions in the most recent quarter. New and renovated stores carry the company's Fas Craves food program. Kotler said returns at those locations are approaching 20%, with some still in a ramp-up phase. The company completed two renovations in Q2 2026, had 12 more under way, and opened one new-to-industry store during the period.