HOUSTON, July 31, 2015 /PRNewswire/ -- Sunoco LP
(NYSE: SUN) announced today that it has completed the acquisition
of Susser Holdings Corporation (SHC) from ETP Holdco Corporation
and Heritage Holdings, Inc., wholly owned subsidiaries of Energy
Transfer Partners, L.P. (NYSE: ETP). The transaction is valued at
approximately $1.93 billion. SUN paid
$966.9 million in cash and issued
ETP's subsidiaries approximately 21.98 million SUN units, valued at
approximately $966.9
million. In addition, there will be an exchange
for 11 million SUN units owned by SHC for another 11 million new
SUN units to a subsidiary of ETP.
The transaction is expected to be slightly accretive to SUN with
respect to distributable cash flow in 2015 and significantly
accretive thereafter.
SHC's assets consist primarily of approximately 680 Stripes®
branded convenience stores that sell motor fuel and merchandise in
Texas, Oklahoma and New Mexico. Stripes®
is the leading independent operator of convenience stores in
Texas based on store count and
retail motor fuel volumes sold. The majority of the
Stripes® locations include food service, primarily
through its proprietary Laredo Taco Company™ concept, which serves
fresh, hot, made-to-order Mexican food.
For SUN, the addition of significant size and scale will deliver
new organic growth opportunities and enhance its ability to focus
on a broad range of third-party acquisition opportunities. The
dynamic EBITDA growth at SHC creates a strong runway for increasing
distributable cash flow beginning in 2016.
Management expects that all income from SHC's operations will be
considered non-qualifying for tax purposes to SUN and as such SHC
will be owned by SUN's indirect wholly owned subsidiary, Susser
Petroleum Property Company, LLC ("PropCo"). SUN anticipates that
cash taxes at PropCo going forward will be minimal.
SUN has posted a slide presentation providing additional details
of the transaction to the Investor Relations portion of its website
at www.sunocolp.com under Events & Presentations.
Sunoco LP (NYSE: SUN) is a master limited partnership
(MLP) that primarily distributes motor fuel to convenience stores,
independent dealers, commercial customers and distributors. SUN
also operates more than 830 convenience stores and retail fuel
sites. SUN conducts its business through wholly owned subsidiaries,
as well as through its 31.58 percent interest in Sunoco, LLC, in
partnership with an affiliate of its parent company, Energy
Transfer Partners, L.P. While
primarily engaged in natural gas, natural gas liquids, crude oil
and refined products transportation, ETP also operates a retail and
fuel distribution business through its interest in Sunoco, LLC, as
well as wholly owned subsidiary, Sunoco, Inc., which operate
approximately 440 convenience stores and retail fuel sites.
For more information, visit the Sunoco LP website at
www.sunocolp.com.
Forward-Looking Statements
This news release contains "forward-looking statements" which
may describe SUN's objectives, expected results of operations,
targets, plans, strategies, costs, anticipated capital
expenditures, potential acquisitions, new store openings and/or new
dealer locations, management's expectations, beliefs or goals
regarding proposed transactions between ETP and SUN, the expected
timing of those transactions and the future financial and/or
operating impact of those transactions, including the anticipated
integration process and any related benefits, opportunities or
synergies. These statements are based on current plans,
expectations and projections and involve a number of risks and
uncertainties that could cause actual results and events to vary
materially, including but not limited to: execution, integration,
environmental and other risks related to acquisitions (including
the Susser drop-down, and future drop-downs) and our overall
acquisition strategy; competitive pressures from convenience
stores, gasoline stations, other non-traditional retailers and
other wholesale fuel distributors located in SUN's and Sunoco,
LLC's markets; dangers inherent in storing and transporting motor
fuel; SUN's or Sunoco, LLC's ability to renew or renegotiate
long-term distribution contracts with customers; changes in the
price of and demand for motor fuel; changing consumer preferences
for alternative fuel sources or improvement in fuel efficiency;
competition in the wholesale motor fuel distribution industry;
seasonal trends; severe or unfavorable weather conditions;
increased costs; environmental laws and regulations; dangers
inherent in the storage of motor fuel; reliance on suppliers to
provide trade credit terms to adequately fund ongoing operations;
acts of war and terrorism; dependence on information technology
systems; SUN's and ETP's ability to consummate any proposed
transactions, or to satisfy the conditions precedent to the
consummation of such transactions; successful development and
execution of integration plans; ability to realize anticipated
synergies or cost-savings and the potential impact of the
transactions on employee, supplier, customer and competitor
relationships; and other unforeseen factors. For a full discussion
of these and other risks and uncertainties, refer to the "Risk
Factors" section of SUN's and ETP's most recently filed annual
reports on Form 10-K and quarterly report on 10-Q for the quarter
ending March 31, 2015. These
forward-looking statements are based on and include our estimates
as of the date hereof. Subsequent events and market developments
could cause our estimates to change. While we may elect to update
these forward-looking statements at some point in the future, we
specifically disclaim any obligation to do so, even if new
information becomes available, except as may be required by
applicable law.
Contacts
Scott
Grischow
Director – Investor Relations and Treasury
(361) 884-2463, scott.grischow@sunoco.com
Dennard-Lascar Associates
Anne Pearson
(210) 408-6321, apearson@dennardlascar.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/sunoco-lp-completes-acquisition-of-susser-holdings-corporation-300121999.html
SOURCE Sunoco LP; Energy Transfer Partners, L.P.