Boston, MA 04/30/2014 (wallstreetpr) – Susser Holdings Corporation (NYSE:SUSS) will receive a total of about $1.8 billion in the latest deal to sell its convenience stores to Energy Transfer Partners, owned by Energy Transfer Equity.
The transaction that is expected to close in the third quarter values each of Susser’s convenience stores at about $2.9 million. The company operates 630 convenience stores in Texas, New Mexico and Oklahoma, and all will be transferred to a new owner once the deal closes.
However, the company assured its customers that the quality services they have known from the company will not be impacted by the change in ownership. In fact, the company could even experience improved services in the new dispensation.
As for the shareholders, several options are on the table. For each share of Susser Holdings Corporation (NYSE:SUSS), shareholders will have the option to get 1.45 common units of Energy Transfer Partners or $80.25 in cash, or even both cash and common units.
Although Susser will transact its convenience stores, the transfers will not affect Susser Petroleum Partners that is based in Houston.
In acquiring Sussers, ETP will be able to add the 630 convenience stores to more than 5,000 stores that it acquired from Sunoco for $5.5 billion. Therefore, ETP expects the latest deal to expand the geographic area.
Trade separately
Susser Holdings Corporation (NYSE:SUSS) said its limited partnership business, Susser Petroleum Partners, will continue to trade on New York Stock Exchange separately. Moreover, ETP said it would sell or drop down the combined retail operations to the remaining business of Susser.
In conclusion
The transaction amount of $1.8 billion looks like a great deal for the Susser Holdings Corporation (NYSE:SUSS) shareholders. Moreover, the option for combined cash and common unit transaction provides a promising deal for the shareholders.
It remains to be seen what use Susser Holdings Corporation (NYSE:SUSS) will put the generated revenue from the transaction.
