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CORPUS CHRISTI, Texas -- Susser Holdings Corp. and Susser Petroleum Partners LP signed a definitive agreement to acquire substantially all of the convenience store assets and fuel distribution contracts of Houston-based 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 also operates branded foodservice concepts in six stores, and has a 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 rebranded Stripes and which stores may be converted to Susser’s wholesale platform.
In addition, 10 to 15 of the Sac-N-Pac locations have been identified as stores that could accommodate Stripes’ Laredo Taco Co. restaurants without substantial alterations to the existing buildings.
Meanwhile, Susser Petroleum Partners will acquire the third-party fuel supply contracts and supply motor fuel to the convenience stores. Additionally, Stripes is acquiring seven parcels of land for future development of Stripes/Laredo Taco Co. units, according to the announcement.
"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," said Sam L. Susser, chairman and CEO of Susser Holdings. "We have tremendous respect for the fine retail and fuel distribution businesses that the Warren family have built, and we welcome the many dedicated employees at Sac-N-Pac to the Susser organization."
The transaction is subject to customary closing conditions, including satisfactory completion of due diligence. The deal is expected to close in the first quarter of 2014. Terms were not disclosed.
"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," said 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. operates approximately 575 convenience stores in Texas, New Mexico and Oklahoma under the Stripes banner. Susser Holdings is also the majority owner and owns the general partner of Susser Petroleum Partners LP, which distributes more than 1.5 billion gallons of motor fuel annually to Stripes stores, independently operated consignment locations, convenience stores and retail fuel outlets operated by independent operators and other commercial customers in Texas, New Mexico, Oklahoma and Louisiana.