A new acquisition will complement Sunoco’s fuel distribution business in the Northeast.
A wholly-owned subsidiary of Sunoco LP has completed the purchase of a wholesale motor fuel distribution business from Alta East Inc. The newly acquired distributor serves the Northeastern U.S., and was acquired for approximately $57 million and the value of inventory on hand at closing.
The business distributes approximately 55 million gallons a year of branded and unbranded gasolines, including Sunoco-branded fuels. As part of the transaction, Sunoco’s subsidiary also acquired a total of 32 fee and leased properties, including 30 properties which are currently operated by third party dealers or commission agents and two non-operating surplus locations. The transaction also included supply contracts with the dealer-owned and operated sites.
The transaction was funded using amounts available under Sunoco’s revolving credit facility and is expected to be immediately accretive to Sunoco with respect to distributable cash flow.
This purchase complements Sunoco’s existing wholesale fuel distribution business in the Northeastern U.S. Sunoco plans to integrate the new business into its extensive fuel distribution network serving 30 states.