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CORPUS CHRISTI, Texas -- Susser Holdings Corp. completed its acquisition of Gainesville Fuels Inc., a wholesale fuel and lubricants distributor. Gainesville Fuels sells approximately 60 million gallons of diesel annually to oil and gas producers in northern Texas and southern Oklahoma.
According to Susser Holdings, Gainesville Fuels will be "dropped down" to Susser Petroleum Partners LP, a recently spun-off master limited partnership that holds the parent company's former midstream assets.
"We would like to extend a warm welcome to the employees and customers of Gainesville Fuels," said Sam L. Susser, president and CEO of Susser Holdings. "The Gainesville acquisition gives us access to new geographic wholesale markets in north Texas and southern Oklahoma."
Susser Holdings expects the dropdown to Susser Petroleum Partners to take place within the next few days. The master limited partnership will then assume Gainesville Fuels' debt and issue $2 million in its common units to Susser Holdings. Beginning in 2014, the Gainesville Fuels acquisition is expected to add incremental cash flow to Susser Petroleum Partners' bottom line.
Raymond James & Associates Inc. served as the advisor for Gainesville Fuels regarding the transaction. The acquisition price was not released.
Corpus Christi, Texas-based Susser Holdings Corp. operates approximately 570 convenience stores and gas stations in Texas, New Mexico and Oklahoma under the Stripes banner. Susser Petroleum Partners LP distributes more than 1.5 billion gallons of motor fuel annually to Stripes stores, as well as other retail outlets.