Susser Holdings Corp. (SUSS) and Susser Petroleum Partners LP (SUSP) announced the closing of their previously announced acquisition of the convenience store assets and fuel distribution contracts of Sac-N-Pac Stores Inc. and 3W Warren Fuels Ltd.
The Sac-N-Pac chain includes 47 convenience stores in the rapidly growing South Central Texas corridor between San Antonio and Austin.
Sac-N-Pac operates its proprietary food service concept in 23 stores, six of which also include a branded food service concept. 3W Warren Fuels supplied approximately 65 million gallons of motor fuel annually to the 47 Sac-N-Pac locations and to approximately 20 independent dealer locations. SUSP has taken over the wholesale fuel supply for all of these locations, which are currently branded under Exxon, Shell and Valero flags.
The acquisition is expected to be accretive to both SUSS and SUSP. The total purchase price was approximately $88 million plus inventories. All 47 of the Sac-N-Pac stores are fee properties. The acquisition also includes one stand-alone branded quick-serve restaurant, five raw tracts of land for future store development and the right to acquire two additional tracts. SUSS plans to initially operate all of the 47 stores under the Sac-N-Pac brand. Over time, the company may elect to convert some of the sites to the Stripes brand, may add the Laredo Taco Co. brand to certain locations or may elect to convert some sites to the company’s wholesale dealer network.