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    Case Study: "The Art of the Deal"

    Why have the majority of our acquisitions been so profitable?  The best answer is relatively simple: location.  It has been our strategy to buy undervalued, distressed assets in niche markets where, over time, we are able to achieve and/or maintain a position of market leadership.       

    The Tyler Refinery. 
    In April 2005, a subsidiary of Delek US purchased the property, plant and equipment at the Tyler refinery for approximately $16 million.  Between April 2005 and the end of 2008, the refinery generated nearly $500 million in contribution margin.  Central to the ongoing profitability of the Tyler facility has been its location: The Tyler refinery is the only full-service supplier of refined petroleum products within a radius of approximately 100 miles.  As a result, the bulk of Tyler’s production is sold into the local market.  It is this niche market location that positions Tyler to remain a valuable growth engine.

    Rolling Up the C-Store Industry.
    Having great locations has been critical to the success of our conveneince store operations.  Since 2001, we have purchased approximately 500 convenience store locations in seven separate acquisitions.  Importantly, each acquisition included convenience store locations in rapid-growth markets throughout the southeastern United States, where demographic trends remain favorable.  By consolidating our market presence in an eight-state radius, we use size and scale to our advantage, positioning us as a leader in markets such as Nashville, Memphis, northern Alabama and northern Georgia.  Notably, of the 458 stores we operated at the end of 2008, a majority were situated at highly sought after “corner locations”, positioning us to capitalize on high-traffic, high-volume regional market centers.