Mergers & Acquisitions

Sunoco unit to acquire fuel distributor in U.S. northeast

Sunoco unit to acquire fuel distributor in U.S. northeast

Sunoco LP announced that one of its wholly owned subsidiaries has entered into an agreement to purchase a wholesale motor fuel distribution business serving the U.S. northeast for approximately USD 57 million plus the value of inventory on hand at the time of closing.

The business distributes approximately 55 million gallons a year of branded and unbranded gasoline, including Sunoco-branded fuels. As part of the transaction, Sunoco’s subsidiary will also acquire 30 fee and leased properties—including company-owned, dealer-operated and consignment sites—as well as supply contracts with dealer-owned and operated sites.

The purchase will complement Sunoco’s existing wholesale fuel distribution business in the northeast.

Sunoco plans to integrate the new business quickly and efficiently into its extensive fuel distribution network, which currently serves 30 states in the United States. The transaction is expected to be immediately accretive to Sunoco with respect to distributable cash flow. The transaction is expected to close in the fourth quarter, subject to customary closing conditions, and will be funded using amounts available under Sunoco’s revolving credit facility.

Sunoco LP, a master limited partnership, operates more than 830 convenience stores and retail fuel sites and also distributes motor fuel to convenience stores, independent dealers, commercial customers and distributors. Sunoco conducts its business through wholly owned subsidiaries, as well as through its 31.58% interest in Sunoco, LLC, in partnership with an affiliate of its parent company, Energy Transfer Partners, L.P. (ETP). While primarily engaged in natural gas, natural gas liquids, crude oil and refined products transportation, ETP also operates a retail and fuel distribution business through its interest in Sunoco, LLC, as well as wholly owned subsidiary, Sunoco, Inc., which operates approximately 440 convenience stores and retail fuel sites.

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