Sunoco LP Grows Fuel Distribution Network in Northeast
HOUSTON — A wholly owned subsidiary of Sunoco LP purchased a wholesale motor fuel distribution business in the Northeast for approximately $57 million plus the value of inventory at closing. Sunoco LP did not reveal the name of the company it acquired, but did say the transaction is expected to close in the fourth quarter.
The Northeast motor fuel business distributes approximately 55 million gallons per year of branded and unbranded gasoline, 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.
According to Sunoco LP, the purchase will complement its existing wholesale fuel distribution business in the Northeast. The master limited partnership said it plans to integrate the new business quickly and efficiently into its extensive fuel distribution network currently serving 30 states.
The transaction is expected to be immediately accretive to Sunoco LP with respect to distributable cash flow.
Houston-based Sunoco LP operates more than 830 convenience stores primarily under the Stripes, MACS, Aloha Petroleum and Tigermarket brand names. It also distributes motor fuel to convenience stores, independent dealers, commercial customers and distributors.