HOUSTON --Sunoco LP has announced that one of its wholly owned subsidiaries has entered into an agreement to purchase a wholesale motor fuel distribution business serving the northeastern United States for approximately $57 million plus the value of inventory on hand at the time of closing.
A spokesperson for Sunoco told CSP Daily News that the company is not disclosing the name of the business at this time.
The business distributes approximately 55 million gallons a year of branded and unbranded gasolines, including Sunoco-branded fuels. As part of the transaction, Sunoco LP’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 LP's existing wholesale fuel distribution business in the Northeast. It plans to integrate the new business “quickly and efficiently” into its extensive fuel distribution network currently serving 30 states.
The companies expect the transaction to close in the fourth quarter, subject to customary closing conditions; Sunoco LP will fund it using amounts available under its revolving credit facility.
Sunoco LP is a master limited partnership (MLP) that operates more than 830 convenience stores and retail fuel sites and also distributes motor fuel to convenience stores, independent dealers, commercial customers and distributors. It 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 LP. 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 operate approximately 440 convenience stores and retail fuel sites.
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