Sunoco LP plans to purchase a network of approximately 100 dealers, several hundred commercial contracts and three terminals, which are connected to major pipelines serving the Upstate New York market.
Sunoco plans to buy the assets from Superior Plus Corp. for approximately $40 million plus working capital adjustments.
The wholesale fuel business sells approximately 200 million gallons of fuel annually through multiple channels. The three terminals have a combined 17 tanks with 429,000 barrels of storage capacity.
The acquisition is consistent with Sunoco’s strategy of utilizing its scale to grow the core fuel distribution business and adding fee-based refined product terminals into the overall portfolio.
Sunoco is a master limited partnership that distributes motor fuel to approximately 9,200 convenience stores, independent dealers, commercial customers and distributors located in more than 30 states.
Superior also closed on the sale of certain retail distillate assets in Pennsylvania today to another third-party for total cash consideration of approximately $16 million.
“The sale of these wholesale and retail distillate assets is consistent with our goal to streamline our product offerings, reduce our heating oil and distillate business exposure and grow our U.S. business by investing in retail propane distribution assets,” said Luc Desjardins, Superior Plus president and CEO. “The proceeds from the sale of these assets allows us to repay debt which can be redrawn to fund acquisitions of retail propane assets consistent with our corporate strategy while maintaining our earnings guidance for 2018.”
Superior Plus Corp. consists of two primary operating businesses: Energy Distribution includes the distribution of propane, distillates and supply portfolio management; and Specialty Chemicals includes the manufacture and sale of specialty chemicals.