The Firm represented Compañía de Petróleos de Chile COPEC S.A. (SNSE: COPEC) (“COPEC”) in its announced acquisition of MAPCO Express, Inc. and certain related affiliated companies (together “MAPCO”) from Delek US Holdings, Inc. (NYSE: DK). Pursuant to the equity purchase agreement, COPEC will acquire 100% of the equity interests in MAPCO through its U.S. subsidiary Copec Inc. for cash consideration of $535 million. The transaction is anticipated to close by year end and will be funded by cash on hand.
COPEC is one of the largest companies in Chile, operating in fuel and lubricants distribution and in convenience stores. COPEC has the largest convenience store network in Chile and approximately 53% of Chilean gasoline market share with 626 company and dealer operated service stations, 82 Pronto-branded convenience stores and 220 Punto-branded convenience stores, an industry innovator with Pagoclick (mobile pay), Zervo (self-serve fueling dispenser) and leading convenience store developer with multiple formats for urban, suburban and highway locations.
Delek US Holdings is a diversified downstream energy company with assets in petroleum refining, logistics and convenience store retailing. The refining segment consists of refineries operated in Tyler, Texas, and El Dorado, Arkansas, with a combined nameplate production capacity of 155,000 barrels per day. The retail segment markets motor fuel and convenience merchandise through a network of approximately 348 company-operated convenience store locations operated under the MAPCO Express®, MAPCO Mart®, East Coast®, Fast Food and Fuel™, Favorite Markets®, Delta Express® and Discount Food Mart™ brand names. The MAPCO convenience store chain has 348 corporate stores operating primarily in Tennessee, Alabama and Georgia, with additional presence in Arkansas, Virginia, Kentucky and Mississippi.
The Simpson Thacher team for the transaction included David Williams, Edward J. Chung, Matthew P. Schwartz, Deepa Thimmapaya, Juan Carlos Balmaceda and Dougal Phillips (M&A); Larry Moss, Nadine Mompremier and Eric Wolf (ECEB); Michael Isby (Environmental); Steven R. DeLott (Insurance); Marcela Robledo and Alexander Lebow (IP); Roald Nashi (Project Finance); Krista McManus and Ryan Issa (Real Estate); and Jacqueline Clinton (Tax).