Insider's View: The Top M&A Deals of 2013 (Part 2 of 3)

Hess & Sunoco make headlines; 7-Eleven, Couche-Tard relatively quiet

Dennis L. Ruben, Executive Managing Director, NRC Realty & Capital Advisors LLC

Top Convenience Store Merger & Acquisition News: Hess, Sunoco, 7-Eleven, Couche-Tard

Susser Holdings Corp.

Susser Holdings Corp. had a significant year in terms of earnings, acquisitions and new store development. The company reported same-store merchandise sales growth of approximately 3.4% for the third quarter and 3.3% for the first nine months of 2013. Retail average per-store fuel volume growth was 5.6% for the third quarter and 5.1% for the first nine months of the year. Total gallon growth was estimated to be 8% to 9% for the third quarter and 6% to 6.5% for the first nine months.

Susser Holdings opened 10 new large-format Stripes c-stores during the third quarter and closed one smaller store. Through the first nine months of 2013, the company has opened a total of 20 new stores and closed three. The larger-format stores are about 7,000 square feet—twice the industry average—and are designed to accommodate the company’s Laredo Taco Company foodservice program. Susser operates a total of 576 convenience stores in Texas, New Mexico and Oklahoma under the Stripes banner, of which 371 include a restaurant. The company and its affiliate Susser Petroleum Partners LP also have a total of 587 contracted branded sites in the wholesale sector, with 97 consignment locations and 490 other independent branded dealer contracts.

In November, Susser announced that it had agreed to purchase all of the convenience store assets and fuel distribution contracts of Sac-N-Pac Stores Inc. and 3W Warren Fuels Ltd., consisting of 47 c-stores in corridor between San Antonio and Austin. 3W Warren Fuels supplies about 65 million gallons of motor fuel to the 47 Sac-N-Pac locations and to about 20 independent dealer locations. The transaction is expected to close during the first quarter of this year.

GPM Investments LLC

GPM Investments LLC acquired the Southeast division of VPS Convenience Store Group LLC, which consists of 263 company-operated stores and 33 dealer locations in the Southeast. GPM also purchased five Get & Zip Convenience Stores from Hurst Harvey Oil Co. Inc., a family-owned and -operated business in Virginia, which brings the total of stores GPM owns in Virginia to 55. As a result of these transactions, GPM operates 467 company stores and supplies 143 dealer locations, for a total of 610 stores in 10 states.

By Dennis L. Ruben, Executive Managing Director, NRC Realty & Capital Advisors LLC
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