HOUSTON & CORPUS CHRISTI, Texas -- In the three months since the successful spinoff of Susser Petroleum Partners LP from Susser Holdings Corp., the two companies have been busy setting up a new business model designed to help each of them grow.
Since the Sept. 24 completion of the initial public offering for SPP, a master limited partnership (MLP) formed to engage in the primarily fee-based wholesale distribution of motor fuels to Susser Holdings and third parties, Susser Petroleum acquired four newly constructed Stripes convenience stores from Susser Holdings Corp. this month, in addition to four stores previously acquired during the month of November. The total cost to Susser Petroleum to acquire these eight stores was $29 million, funded primarily through borrowings under the firm’s revolving credit facility.
Under the terms of the omnibus agreement, Susser Holdings will pay rent to Susser Petroleum equal to 8% of the cost of each store for an initial term of 15 years. In addition, Susser Petroleum will be the sole distributor of motor fuel to these eight stores at a fixed margin of 3 cents per gallon for an initial contract term of 10 years.
Susser Petroleum also recently acquired two convenience store properties that will be leased to third-party wholesale dealers, and it will supply motor fuel to these sites.
“The real-estate partnership between our two companies is off to a great start,” said Sam L. Susser, chairman and CEO of Susser Petroleum and president and CEO of Susser Holdings. “Including the eight stores that have been dropped down to the MLP, we’ve opened 21 Stripes stores so far this year, and we expect to open four more in the coming weeks. We expect Susser Petroleum Partners to complete the acquisition of seven additional Stripes stores by April of 2013.”
Meanwhile, Susser was on hand to ring the Opening Bell of the New York Stock Exchange on Dec. 21 to celebrate the transfer of the listing of Susser Holdings’ common stock from the NASDAQ Global Select Market to the NYSE. Susser Petroleum began trading on the NYSE on Sept. 20, following an initial public offering of units.
Susser Holdings Corp. is a third-generation family-led business based in Corpus Christi, Texas, that operates 555 convenience stores in Texas, New Mexico and Oklahoma under the Stripes banner.
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