Susser Holdings Corp. (SUSS) and Susser Petroleum Partners LP (SUSP) have signed a definitive agreement to acquire substantially all of the convenience store assets and fuel distribution contracts of Sac-N-Pac Stores Inc. and 3W Warren Fuels Ltd.
Sac-N-Pac owns and operates 47 convenience stores in the rapidly growing south central Texas corridor between San Antonio and Austin. 3W Warren Fuels supplies approximately 65 million gallons of motor fuel annually to the 47 Sac-N-Pac locations and to approximately 20 independent dealer locations. Sac-N-Pac operates branded food service concepts in six stores and operates its proprietary foodservice concept in nine stores.
Stripes LLC, the convenience store subsidiary of Susser Holdings, plans to acquire and initially operate the convenience store properties under the Sac-N-Pac brand until it is determined which stores will be branded Stripes and which stores may be converted to the wholesale platform. Initially, 10-15 stores have been identified as stores that could accommodate Laredo Taco Co. restaurants without substantial alterations to the existing buildings. Susser Petroleum Partners will acquire the third-party fuel supply contracts and will supply motor fuel to the convenience stores. Additionally, Stripes LLC is acquiring seven parcels of land for future development of Stripes/Laredo Taco Co. units.
The transaction is subject to customary conditions to closing, including satisfactory completion of due diligence, and is expected to close in the first quarter of 2014 and to be accretive to both SUSS and SUSP. Terms of the transaction were not disclosed.
“This is another instance where the combination of our wholesale and retail platforms work together to create great value in making a strategic acquisition like Sac-N-Pac and Warren Fuels. We are pleased to expand our retail and wholesale operations in this rapidly growing area of Texas. We have tremendous respect for the fine retail and fuel distribution businesses that the Warren family has built, and we welcome the many dedicated employees at Sac-N-Pac to the Susser organization,” said Sam Susser, Chairman and CEO of Susser Holdings.
“This decision was a difficult one given our close ties with our communities and the relationships we have built with our employees and business associates,” noted Blair Warren and Cheryl Warren Cuppetilli of the Warren family. “Sac-N-Pac and the Warren family are pleased to have entered into this agreement with a company that we believe will be a good partner with the communities we have served for the last 50 years. We also want to thank our employees for their many years of loyal and dedicated service to the Sac-N-Pac mission.”
Susser Holdings Corp. is a third-generation family led business based in Corpus Christi, Texas that operates approximately 575 convenience stores in Texas, New Mexico and Oklahoma under the Stripes banner.