Sunoco to sell 204 convenience stores to 7-Eleven for $1bn; to acquire European liquid fuels terminals
Sunoco LP (NYSE: SUN) announced two major business moves: the sale of 204 convenience stores to 7-Eleven, Inc. for approximately $1 billion, and the intended acquisition of liquid fuels terminals in Amsterdam, Netherlands, and Bantry Bay, Ireland, from Zenith Energy.
Sunoco LP’s $1.0 Billion Deal with 7-Eleven: A Major Shift in Convenience Store Operations
Sunoco entered a definitive agreement to sell 204 convenience stores located in West Texas, New Mexico, and Oklahoma to 7-Eleven. This $1.0 billion deal, subject to customary adjustments, also includes amendments to Sunoco’s existing fuel supply agreement with 7-Eleven, promising additional fuel gross profit. The proceeds will significantly reduce Sunoco’s leverage, bolstering its financial standing and paving the way for future growth opportunities. The transaction’s completion hinges on regulatory approvals and customary closing conditions.
The Business Dynamics of Sunoco’s Latest Deals: Convenience Stores Sale and European Expansion
Strengthening Global Presence: Sunoco’s Acquisition of European Fuel Terminals
Parallel to this sale, Sunoco announced its plan to acquire the entire equity interest in Zenith Energy Netherlands Amsterdam B.V. This acquisition includes strategic liquid fuels terminals in Amsterdam and Bantry Bay, enhancing Sunoco’s supply optimization for its East Coast business and reinforcing its focus on stable midstream income. This move, expected to be accretive to unitholders from the first year, will be financed through Sunoco’s revolving credit facility. The deal, set to close in the first quarter of 2024, awaits the completion of Dutch works council consultations.
Despite these significant transactions, Sunoco’s 2024 EBITDA guidance remains unchanged, ranging from $975 million to $1 billion.
Sunoco LP, a master limited partnership, specializes in motor fuel distribution to over 10,000 convenience stores, dealers, and commercial customers across 40+ U.S. states and territories. It also manages refined product transportation and terminalling assets. Energy Transfer LP owns the general partner of Sunoco.