Susser Holdings Corporation and Susser Petroleum Partners announced that the acquisition of Gainesville Fuels Inc. has been completed. Gainesville Fuels operates a wholesale fuel and lubricants distribution business selling approximately 60 million gallons of diesel annually to oil and gas producers in northern Texas and southern Oklahoma. Susser Holdings will contribute the acquired company to Susser Petroleum Partners.
“We would like to extend a warm welcome to the employees and customers of Gainesville Fuel. The Gainesville acquisition gives us access to new geographic wholesale markets in North Texas andSouthern Oklahoma,” said Sam L. Susser, president and chief executive officer of Susser Holdings.
“By combining the Gainesville business with our existing commercial fuels business serving customers in the Permian basin, we expect to realize operating and procurement synergies. We also have the opportunity to expand sales to existing customers in these new service areas,” Susser said.
Management expects that the contribution of the company to Susser Petroleum will occur within the next few days. In connection with this value-for-value exchange, Susser Petroleum will assume Gainesville’s existing indebtedness and certain other liabilities, and will issue $2.0 million in Susser Petroleum common units to Susser Holdings. Susser Holdings expects to immediately record a one-time non-cash deferred tax charge of approximately $3.6 million arising from the contribution of goodwill from a taxable entity (Susser Holdings) to a non-taxable entity (Susser Petroleum) in connection with this transaction.
Beginning in 2014, the acquisition is expected to generate annual incremental distributable cash flow for Susser Petroleum of $0.05 to $0.10 per common unit, and approximately $0.03 to $0.07 of incremental earnings per common share for Susser Holdings, excluding any synergies.
Raymond James & Associates, Inc. acted as advisor to Gainesville Fuels.
Susser Holdings also announced that it has opened six new large-format Stripes convenience stores to date during the third quarter, bringing the total new store construction for the year-to-date to 16.
Susser Holdings Corporation is a third-generation family led business based in Corpus Christi, Texas, that operates approximately 570 convenience stores in Texas, New Mexico and Oklahoma under the Stripes banner. Restaurant service is available in approximately 365 of its stores, primarily under the proprietary Laredo Taco Company brand. Susser Holdings also is majority owner and owns the general partner of Susser Petroleum Partners LP, which distributes over 1.5 billion gallons of motor fuel annually to Stripes stores, independently operated consignment locations, convenience stores and retail fuel outlets operated by independent operators and other commercial customers in Texas, New Mexico, Oklahoma and Louisiana.
