Done Deals: Sunoco LP & Par Petroleum Complete Acquisitions

HOUSTON — Merger and acquisition activity continues to heat up in the convenience store industry, with two deals dotting the final I's and crossing the final T's this week.

On Wednesday, Houston-based Sunoco LP completed its previously announced acquisition of a 31.58-percent equity interest in Sunoco LLC from ETP Retail Holdings, an affiliate of Energy Transfer Partners (ETP). The transaction is valued at approximately $816 million. 

Under the terms of the agreement, Sunoco paid $775 million in cash and issued to ETP 795,482 new Sunoco units valued at $40.8 million. The acquisition was funded using proceeds from the previously announced issuance of senior notes that was also completed Wednesday. 

Sunoco LLC distributes approximately 5.3 billion gallons per year of motor fuels to customers in more than 26 states in the East, Midwest and Southeast regions of the United States. It distributes the fuel to:

• Sunoco Inc. (owned by ETP) for resale at approximately 440 company-operated Sunoco- and APlus-branded convenience stores and other retail fuel outlets;
• Approximately 880 Sunoco-branded dealer locations under long-term fuel supply agreements;
• Other fuel distributors of Sunoco-branded fuel that supply approximately 3,640 additional third-party retail fuel outlets; and
• Approximately 400 other commercial customers under spot or short-term contracts.

Sunoco LP is a master limited partnership that primarily distributes motor fuel to convenience stores, independent dealers, commercial customers and distributors. It also operates more than 150 convenience stores and retail fuel sites. 

In an entirely separate transaction, Houston-based Par Petroleum Corp. sealed its deal for Koko'oha Investments Inc., the parent company of Mid Pac Petroleum LLC based in Honolulu. The acquisition includes 85 retail outlets and four terminals in Hawaii for a total purchase price of $107 million plus working capital. 

"We are excited to welcome a strong and successful organization under Jim Yates' leadership to the Par family. The addition of Mid Pac significantly strengthens our marketing position in Hawaii and supports our refinery optimization at higher rates," said Joseph Israel, president and CEO of Par Petroleum.

Par, through its subsidiaries, owns and operates a 94,000-barrel-per-day refinery with related logistics and retail network in Hawaii. Par also transports, markets and distributes crude oil from the western United States and Canada to Hawaii and other refining hubs in the Midwest, Gulf Coast and East Coast.