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Energy Transfer Partners to buy Susser for $1.8bn

Published 29 April 2014

Energy Transfer Partners (ETP) has agreed to buy Texas-based convenience store chain Susser Holdings for approximately $1.8bn.

Under the deal, ETP will secure the existing retail operations of 630 convenience store locations, alongside general partner interest and the incentive distribution rights in Susser Petroleum Partners, and approximately 11 million Susser Petroleum Partners (SUSP) common units.

Susser's retail convenience stores sell branded gasoline under the brand Stripes, across Texas and neighboring markets is expected to provide ETF's subsidiary Sunoco with an expanded network. It currently operates a chain of 5,000 retail stores, primarily on the East Coast.

Susser chairman and CEO Sam Susser said that the collaboration with Energy Transfer Partners and Sunoco is a significant step for Susser Holdings in delivering considerable value for the shareholders.

"This transaction also enables our shareholders who elect ETP units to participate in the future growth of the retail business," added Susser.

Sunoco and president Bob Owens said, "The combination of Susser and our Sunoco retail business creates a platform to build a best in class and unique business that is well diversified by both geography and product lines."

ETP, meanwhile, has signed a support agreement with shareholders representing 10% of the outstanding Susser Holdings' shares, agreeing to vote in favor of the merger.

The merger is expected to generate synergy opportunities of over $70m annually from fuel, merchandising and improved buying power reflecting economies of scale.