DJ Energy Transfer Partners to Buy Susser Holdings for $1.8 Billion
7:47 AM Eastern Daylight Time Apr 28, 2014
By Michael Calia
Energy Transfer Partners LP on Monday said it reached a deal to buy Susser Holdings Corp. for about $1.8 billion as it looks to create a stand-alone retail business with ETP's Sunoco Inc. as the centerpiece.
Susser shareholders will have the option to receive $80.25 in cash or about 1.45 ETP common units, or a combination of both, for each share of Susser, Energy Transfer Partners said.
ETP, which owns retail gasoline purveyor Sunoco, said it would end up owning the general partner interest and incentive distribution rights in Susser Petroleum Partners LP, as well as 50.2% of the common units in the business.
The deal includes Susser Holdings' retail operations, which consists of 630 convenience-store locations. Sunoco has a network of more than 5,000 retail locations, mostly on the East Coast. The Susser deal will give Sunoco an "exceptional base" in Texas and neighboring states, ETP said.
After the deal closes, ETP said it intends to drop down the combined retail business to Susser Petroleum Partners, with the eventual target being the creation of a separate, stand-alone retail business. Sunoco Chief Executive Bob Owens will act in the same role for the combined business.
ETP hopes the deal will achieve more than $70 million in annual synergy benefits within six to 12 months of the deal's closing, which is expected in the third quarter.
Shares of Susser Holdings, Susser Petroleum Partners and ETP were inactive premarket.
"Good night, Westley. Good work. Sleep well. I'll most likely kill you in the morning."
