DALLAS (AP) — Energy Transfer Partners LP is buying Susser Holdings Corp., an operator of convenience stores that sell gas, in a deal valued at about $1.8 billion.
Energy Transfer bought Sunoco Inc. for about $5.5 billion in 2012. The company said that adding Corpus Christi-based Susser to Sunoco's more than 5,000 retail stores —which are mostly on the East Coast — will expand Sunoco's geographic reach. Susser operates 630 Stripes and Sac-N-Pac convenience stores in New Mexico, Oklahoma and Texas.
Susser shareholders will choose either $80.25 in cash, 1.4506 Energy Transfer common units, or a combination of both for each share held.
The transaction will give Energy Transfer ownership of the general partner interest and incentive distribution rights in Susser Petroleum Partners LP, about 11 million Susser Petroleum common units and Susser Holdings' retail operations.
Energy Transfer anticipates more than $70 million in annual savings and foresees the possibility of additional savings.
Sunoco President and CEO Bob Owens will take on those roles for the combines businesses. He will report to Energy Transfer Chairman and CEO Kelcy Warren. Sam Susser will remain chairman of Susser Petroleum, which will continue to be based in Houston and trade on the New York Stock Exchange.
The deal, which was unanimously approved by Susser Holdings and Energy Transfer's boards, is targeted to close in the third quarter. It still needs approval from Susser Holdings' shareholders.