Energy Transfer Partners (ETF) has agreed to buy Susser Holdings, an operator of gas stations and convenience store chain in the US, for nearly $1.8bn.
As per the agreed terms, ETF will take over Susser’s 630 convenience stores that retail gasoline under the ‘Stripes’ brand.
Also, the acquirer will secure general partner (GP) interest, incentive distribution rights (IDRs) in Susser Petroleum Partners (SUSP) and around 11 million common units of SUSP.
The agreement also provides Susser Holdings’ shareholders with an option to elect to receive either $80.25 in cash or 1.4506 ETP common units, or a combination of both, for each share held.
The acquisition of Susser’s retail operations spread across Texas and in the neighboring states is expected to strengthen ETF’s petrol retailing subsidiary Sunoco’s footprint across the US.
Sunoco owns nearly 5,000 outlets across the East Coast of the US.
Sunoco CEO and president Bob Owens said that the combination of Susser and Sunoco retail business creates a platform to build a unique business that would be diversified by both geography and product lines.
Susser chairman and CEO Sam Susser said, "The combination with Energy Transfer Partners and Sunoco is the right next step for Susser Holdings and delivers significant value for Susser Holdings shareholders. This transaction also enables our shareholders who elect ETP units to participate in the future growth of the retail business."