Susser Acquires Contracts, Site
Same-store merchandise sales increase 3.4%; average retail fuel volumes per store up 3.9%
CORPUS CHRISTI, Texas -- Susser Holdings Corp. said that on October 11, it completed the acquisition of 39 long-term fuel supply agreements to wholesale dealer sites in Texas and Oklahoma. As part of the transaction, the company also acquired one retail convenience store in Houston in September 2010, which will be rebranded to Stripes.
This transaction was funded with cash and is expected to be immediately accretive to earnings. Terms were not disclosed and 'the transaction value was not material.
The company opened four new retail stores during the third quarter, [image-nocss] including the one acquired, for a total of 525 retail stores operated at the end of the quarter. Two additional stores have opened and one smaller store has been closed to date in the fourth quarter, with another five retail stores under construction that are expected to open by year-end.
In its wholesale segment, the company added three dealer sites and discontinued seven during the third quarter, for a total of 383 dealer sites as of the end of the quarter.
Following the 39-site acquisition in October, the company now supplies motor fuel to approximately 420 wholesale dealer sites.
And the company also provided a third-quarter and nine-month 2010 operating results update. It said that it expects to report same-store merchandise sales growth for the quarter of approximately 3.4%. Retail average per-store fuel volumes are expected to increase by 3.9% year-over-year.
For the first nine months of 2010, the company expects to report same-store merchandise sales growth of 3.0% and retail average per-store fuel volume growth of approximately 1.8%.
Susser will release its third-quarter 2010 financial and operating results on November 9.
Corpus Christi, Texas-based Susser Holdings Corp. is a third-generation, family-led business that operates more than 525 convenience stores in Texas, New Mexico and Oklahoma primarily under the Stripes banner. Restaurant service is available in more than 305 of its stores, primarily under the proprietary Laredo Taco Co. brand. It also supplies branded motor fuel to approximately 420 independent dealers through its wholesale fuel division.