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Since November, Susser Petroleum bought eight Stripesbranded stores from its parent company for $29 million. Susser Petroleum paid for the eight stores under its revolving credit facility.
Under terms of the agreement, Susser Holdings will pay rent to Susser Petroleum equal to 8 percent of the cost of each of the eight stores for an initial term of 15 years. In addition, Susser Petroleum will be the sole distributor of motor fuel to these eight stores at a fixed margin of 3 cents per gallon for an initial contract term of 10 years.
Also, Susser Petroleum announced it acquired two additional c-store properties that will be leased to third-party wholesale dealers. Susser Petroleum will supply motor fuel to both of those sites.
“The real estate partnership between our two companies is off to a great start,” said Sam L. Susser, chairman and CEO of Susser Petroleum and CEO of Susser Holdings. “Including the eight stores that have been ‘dropped down’ to the MLP [master limited partnership], we’ve opened 21 Stripes stores so far this year, and we expect to open four more in the coming weeks. We expect Susser Petroleum Partners to complete the acquisition of seven additional Stripes stores by April 2013.”
In related news, Susser Holdings rang the opening bell at the New York Stock Exchange (NYSE) at 9:30 a.m. Eastern time today to celebrate the transfer of its stock from the NASDAQ Global Select Market to the NYSE.
Susser Petroleum Partners, distributor of more than 1.4 billion gallons of motor fuel annually to c-stores, was spun off from its parent company on Sept. 20 as an initial public offering and currently trades on the NYSE. Sam Susser previously noted that Susser Petroleum’s success on the NYSE was a main reason he wanted to transfer Susser Holdings’ market affiliation.
Corpus Christi, Texas-based Susser Holdings Corp. is a third-generation, family-led business that operates approximately 555 c-stores in Texas, New Mexico and Oklahoma. Restaurant service is available in 345 of the Stripes location, primarily under the proprietary Laredo Taco Co. brand.