Susser Holdings Acquires Wholesale Fuel & Lubricants Distributor Serving Oilfield Clients in Texas and Oklahoma
Susser Holdings Corporation (SUSS) and Susser Petroleum Partners LP (SUSP) announced that SUSS has completed the acquisition of Gainesville Fuels Inc., which operates a wholesale fuel and lubricants distribution business selling approximately 60 million gallons of diesel annually to oil and gas producers in northern Texas and southern Oklahoma. SUSS will contribute the acquired company to SUSP.
“We would like to extend a warm welcome to the employees and customers of Gainesville Fuel. The Gainesvilleacquisition gives us access to new geographic wholesale markets in North Texas and Southern Oklahoma,” said Sam L. Susser, president and chief executive officer of Susser Holdings.
“By combining the Gainesville business with our existing commercial fuels business serving customers in the Permian basin, we expect to realize operating and procurement synergies. We also have the opportunity to expand sales to existing customers in these new service areas,” Susser said.
Management expects that the contribution of the company to SUSP will occur within the next few days. In connection with this value-for-value exchange, SUSP will assume Gainesville’s existing indebtedness and certain other liabilities, and will issue $2.0 million in SUSP common units to SUSS. SUSS expects to immediately record a one-time non-cash deferred tax charge of approximately $3.6 million arising from the contribution of goodwill from a taxable entity (SUSS) to a non-taxable entity (SUSP) in connection with this transaction.
Beginning in 2014, the acquisition is expected to generate annual incremental distributable cash flow for SUSP of $0.05 to $0.10 per common unit, and approximately $0.03 to $0.07 of incremental earnings per common share for SUSS, excluding any synergies.
Raymond James & Associates, Inc. acted as advisor for Gainesville Fuels in this transaction.