Sunoco Adds Fuel Business to Operating Platform

DALLAS — Sunoco LP will purchase Emerge Energy Services LP’s fuels business for $178.5 million, subject to working capital adjustments. The fuels business comprises Dallas-based Direct Fuels LLC and Birmingham-based Allied Energy Company LLC, both wholly owned subsidiaries of Emerge, and engages in the processing of transmix and the distribution of refined fuels.

Included in the transaction are two transmix processing plants with attached refined product terminals located in the Birmingham, Ala., and greater Dallas metro areas. Combined, the plants can process more than 10 thousand barrels per day of transmix, and the associated terminals have more than 800 thousand barrels of storage capacity.

"We are pleased to add the Emerge Fuels Business to the existing Sunoco operating platform," said Bob Owens, Sunoco's President and CEO. "This transaction is consistent with our strategy of expanding our business through the acquisition of assets that are both complementary to our core wholesale and retail network and that further diversify Sunoco's income stream."

The transaction is expected to be immediately accretive to Sunoco with respect to distributable cash flow.

The transaction is expected to close during the third quarter and is subject to regulatory clearances and the satisfaction of other customary closing conditions.

Dallas-based Sunoco LP is a master limited partnership that operates approximately 1,300 convenience stores and gas stations, primarily under the APlus, Stripes, Aloha Island Mart and Tigermarket brands. It also distributes motor fuel to c-stores, independent dealers, commercial customers and distributors located in 30 states at approximately 6,800 sites.