Sunoco LP To Buy Northeast-Based Fuel Distributor

(RTTNews) - Sunoco LP (SUN) announced that one of its wholly owned subsidiaries has entered into an agreement to purchase a wholesale motor fuel distribution business serving the Northeastern United States for about $57 million plus the value of inventory on hand at the time of closing.

The business distributes approximately 55 million gallons a year of branded and unbranded gasolines, including Sunoco-branded fuels. As part of the transaction, SUN's subsidiary will also acquire 30 fee and leased properties -- including company-owned, dealer-operated and consignment sites -- as well as supply contracts with dealer-owned and operated sites.

The transaction is expected to close in the fourth quarter, subject to customary closing conditions, and will be funded using amounts available under SUN's revolving credit facility.