DALLAS, Jan. 18, 2019 /PRNewswire/ -- Sunoco LP
(NYSE: SUN) ("Sunoco") announced the completion of the acquisition
of the wholesale fuel distribution business from Schmitt Sales, Inc. and the execution of a
definitive agreement to acquire certain convenience store locations
from Speedway LLC. Sunoco will convert the acquired convenience
store locations to wholesale distribution sites.
Combined, these wholesale fuels businesses distribute
approximately 180 million gallons of fuel annually across a network
of dealer and commission agent-operated locations in the Upstate
New York, Ohio, Pennsylvania and West Virginia markets.
Total consideration for both acquisitions is approximately
$50 million plus working capital
adjustments.
These acquisitions are consistent with Sunoco's strategy of
utilizing its scale to grow the core fuel distribution business.
Sunoco will fund the transactions with cash on hand and
amounts available under its revolving credit facility, while
continuing to maintain its targeted leverage ratio. These
transactions are expected to be accretive to Sunoco with
respect to distributable cash flow in the first year.
Additionally, Sunoco announced the execution of a definitive
asset purchase agreement with Attis Industries Inc. (NASDAQ: ATIS)
("Attis") for the sale of Sunoco's ethanol plant, including the
grain malting operation, in Fulton, New York. As part of the
transaction, Sunoco will enter into a 10-year ethanol offtake
agreement with Attis.
Total consideration for the divestiture is $20 million in cash. Sunoco expects to use
the proceeds to repay indebtedness as it continues to maintain its
targeted leverage ratio. The transaction is subject to
regulatory clearances and customary closing conditions and is
expected to close in the first quarter of 2019.
About Sunoco LP
Sunoco LP (NYSE: SUN) is a master
limited partnership that distributes motor fuel to
approximately 10,000 convenience stores, independent dealers,
commercial customers and distributors located in more than 30
states. Sunoco's general partner is owned by Energy Transfer
Operating, L.P., a subsidiary of Energy Transfer LP (NYSE:
ET).
Cautionary Statement Relevant to Forward-Looking
Information
This press release may include certain
statements concerning expectations for the future that are
forward-looking statements as defined by federal law. Such
forward-looking statements are subject to a variety of known and
unknown risks, uncertainties, and other factors that are difficult
to predict and many of which are beyond management's control. An
extensive list of factors that can affect future results are
discussed in Sunoco's Annual Report on Form 10-K and other
documents filed from time to time with the Securities and Exchange
Commission. Sunoco undertakes no obligation to update or revise any
forward-looking statement to reflect new information or events.
The information contained in this press release is available on
our website at www.SunocoLP.com
Contacts
Investors:
Scott Grischow
Senior Director – Investor Relations and Treasury
(214) 840-5660, scott.grischow@sunoco.com
Derek Rabe, CFA
Manager – Investor Relations, Growth and Strategy
(214) 840-5553, derek.rabe@sunoco.com
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SOURCE Sunoco LP