Christi, Texas-based Susser Holdings, operator of 330 convenience stores in Texas and Oklahoma under the Stripes banner, is in the process of acquiring San Angelo, TX-based Town & Country Food Stores, operator of 140 convenience stores in Central and West Texas and Eastern New Mexico,
for $361 million.
To fund the transaction, Susser has priced an $150 million private offering of senior notes. In addition, the company entered into a $50 million sale/leaseback agreement with Orlando, Fla.-based National Retail Propeties Under terms of this agreement, National Retail will acquire 13 Susser properties and Susser will then execute triple-net, 20-year with 5-year renewal option, lease agreements on the portfolio.
Expected completion of the transaction is scheduled to occur by the end of this year. Susser says it plans to retain current management of Town & Country and that it will fund additional store growth of the chain, primarily in its existing markets.
With sales of $842 million, Town & Country owns 80% of its store real estate and has a bank of 14 undeveloped sites in its portfolio.
