Sunoco Closes on Acquisition Deal With Denny Oil
DALLAS — Sunoco LP is building up its presence in the eastern Texas and Louisiana markets by finalizing its transaction with Denny Oil Co.
Under the terms of the deal, one of Sunoco's wholly owned subsidiaries acquired the convenience store assets and wholesale fuel business from Nacogdoches, Texas-based Denny Oil for approximately $53 million.
The transaction includes Denny Oil's Check Point convenience store chain that operates throughout East Texas and West Louisiana, its network of company-owned, dealer-operated convenience stores, its commercial fuels and lubricants business, and 126 dealer accounts to which the company supplied branded and unbranded fuel.
The c-store chain primarily distributes Exxon and Shell branded fuel. The Check Point stores will be reimaged to the Stripes c-store banner. In addition, the dealer locations will retain their current fuel brands through Sunoco's s wholesale branded fuel marketer agreements.
Corner Capital provided valuation and strategic merger-and-acquisition advisory services throughout the process to Denny Oil and its CEO Dick Rudisill.
"The team at Corner Capital provided invaluable assistance to our company and our family throughout our entire process. Their expertise and professionalism helped get a complicated transaction across the finish line," Rudisill said.
Carl Ray Polk, partner at Corner Capital Advisors, added: "I've known the Rudisill family for decades — we appreciate their trust in helping them with this process. Dick Rudisill built a great company that will be in good hands as our industry continues to evolve."
Sunoco CEO Bob Owens announced the deal during the company’s 2016 fiscal second-quarter earnings call on Aug. 4, as CSNews Online previously reported.
According to Sunoco, "This acquisition strengthens, and in some cases establishes, Sunoco's existing convenience store and wholesale fuel distribution business in East Texas and Louisiana."
The deal was funded using amounts available under Sunoco's revolving credit facility and is expected to be immediately accretive to Sunoco with respect to distributable cash flow.
Dallas-based Sunoco LP is a master limited partnership that operates approximately 1,340 retail fuel sites and convenience stores including the APlus, Stripes, Aloha Island Mart and Tigermarket banners. It also distributes motor fuel to convenience stores, independent dealers, commercial customers and distributors located in more than 30 states at approximately 6,900 sites. Energy Transfer Equity LP owns Sunoco's general partner and incentive distribution rights.