Arco and its subsidiary GPM will be merged with Haymaker Acquisition

Arco and its subsidiary GPM, which operates in the US convenience stores and gas stations, will be merged with Haymaker Acquisition Corp. II a US company traded on NASDAQ (NYSE: $ 400 million)
The transaction is expected to include consideration for Arco's shareholders consisting of up to $ 150 million in cash and the balance in shares that will constitute a cumulative 40% of the merged company's shares.
Arco shares are currently trading in Tel Aviv at a value of about $ 175 million. As part of the transaction, Arco's shares are planned to be deleted from trading in Tel Aviv and the merged company's shares are expected to be traded dual on NASDAQ and Tel Aviv. Arco Chairman and CEO Eric Kotler is expected to be the largest shareholder in the merged company and is scheduled to continue as chairman and CEO of the merged company.
The transaction is currently in the phase of a letter of non-binding intent and the parties intend to enter into binding agreements during the third quarter and complete the transaction (subject to obtaining the required approvals) by the end of 2020.
 Eric Kotler, CEO and Chairman of Arco's Board of Directors and GPM's CEO: "We are pleased with the deal. The planned connection with Haymaker, which is a NASDAQ trading company, will increase our options as a company operating convenience stores and gas stations in the US to execute our growth strategy, in the context of the large and growing industry of the US convenience store market, which also demonstrates resilience during Economic slowdown, all while flooding value to shareholders in both companies.
 The deal is expected to generate value flooding for Arco and GPM at a value four times higher than the value at which Arco is currently traded, with Haymaker paying Arco shareholders up to $ 150 million in cash and allocating them shares that will make up about 40% in the merged company. The value of the merged company is expected to be about $ 1.5 billion. "
Stephen Hayer, CEO and Chairman of Haymaker: "The proposed deal with Arco and GPM meets all of the strategic criteria we have set for Haymaker. This is a significant transaction at a value of approximately $ 1.5 billion, with a large scale business, geographical diversification and growth opportunities Significance, led by Mr. Kotler and a strong and experienced management team.
At present, Arco holds approximately 68% of GPM's equity rights and the remaining capital rights (approximately 32%) are held by US investment funds - Davidson Kempner Capital Management L.P., Harvest Partners SCF, and funds managed by Ares Management Corporation. These funds are designed to participate in the transaction in accordance with the value and principles of the transaction that will apply in relation to Arco's shareholders.
As part of the deal, Eric Kotler is expected to serve as chairman of the board and CEO of HYAC. Kotler's side is expected to serve on the board of directors of the merged company Mr. Steven Heir, currently serving as CEO and chairman of HYAC, which has over 40 years of experience in the world of consumer and hospitality, including past senior positions at companies including the World Coca-Cola. COO and President), Starwoods Hotels (CEO) and Turner Broadcasting / Time Warner (President and COO), and Mr. Andrew Hayer, currently President and CEO of HYAC, who has over 40 years of investment experience (including past Vice Chairman of the Investment Bank (CIBC World Markets).
As part of the transaction, HYAC shares are expected to be traded dual on NASDAQ and Tel Aviv.