Sunoco LP has recently reached an agreement to sell a total of 204 convenience stores, along with the well-known Stripes convenience stores and Laredo Taco Company restaurants, in West Texas, New Mexico, and Oklahoma. The deal, valued at approximately $1 billion, involves the renowned retail giant, 7-Eleven Inc.
As a result of this latest transaction, Sunoco’s stock (SUN) experienced a 1.6% increase during premarket trading. It is worth noting that 7-Eleven does not have publicly traded stock.
This acquisition by 7-Eleven will encompass all the remaining Stripes and Laredo Taco Company locations that were not already acquired through a previous deal in 2018. These stores will be added to 7-Eleven’s vast network, which already consists of 13,000 Speedway and Stripes convenience stores in the United States and Canada.
Joe DePinto, the Chief Executive of 7-Eleven, expressed his satisfaction with the inclusion of the Stripes and Laredo Taco locations, stating that they have proven to be a valuable addition to their family of brands.
In terms of Sunoco’s plans for the proceeds generated from this sale, the company intends to utilize them for reducing debt and pursuing future growth opportunities.
Additionally, Sunoco has also revealed that it will be acquiring liquid fuel terminals located in Amsterdam and Bantry Bay, Ireland, from Zenith Energy. Although the exact sum of this acquisition remains undisclosed, Sunoco aims to finance it through its revolving credit facility. This “tuck-in acquisition” is expected to contribute to unitholder distributions in its first year of ownership. The deal is projected to close within the first quarter of 2024.
Furthermore, Sunoco reaffirms its expectation of achieving adjusted earnings before interest, taxes, amortization, and depreciation in the range of $975 million to $1 billion for the year 2024.