Sunoco LP has announced that one of its wholly owned subsidiaries has completed the purchase of a wholesale motor fuel distribution business serving the Northeastern US from Alta East, Inc. for approximately US$57 million plus the value of inventory on hand at closing.
The business distributes approximately 55 million gal./y of branded and unbranded gasolines, including Sunoco-branded fuels. As part of the transaction, SUN's subsidiary also acquired a total of 32 fee and leased properties, including 30 properties, which are currently operated by third party dealers or commission agents and two non-operating surplus locations. The transaction also included supply contracts with the dealer-owned and operated sites.
The transaction was funded using amounts available under SUN's revolving credit facility and is expected to be immediately accretive to SUN with respect to distributable cash flow.
This purchase complements SUN's existing wholesale fuel distribution business in the Northeastern US. SUN plans to integrate the new business into its extensive fuel distribution network serving 30 states.
Adapted from press release by Rosalie Starling
Read the article online at: https://www.hydrocarbonengineering.com/refining/17122015/sunoco-acquires-fuel-distributor-1995/