The largest fuel distributor in the U.S. also plans to acquire liquid fuels terminals in Amsterdam, Netherlands, and Bantry Bay, Ireland from Zenith Energy, according to a news release.
The convenience store deal includes stores in West Texas, New Mexico, and Oklahoma. The $1 billion sale includes adjustments for fuel and merchandise inventory, Sunoco reported. As part of the transaction, the company also will amend its existing take-or-pay fuel supply agreement with 7-Eleven to incorporate additional fuel gross profit.
The sale is expected to close “promptly” upon receipt of regulatory approval, Sunoco said.
“Proceeds from the sale will allow [Sunoco] to materially reduce leverage to execute on future growth opportunities while maintaining a strong balance sheet and multi-year distribution growth,” the company maintained.
The terminals acquisition calls for Sunoco to acquire 100% of the equity interest in Zenith Energy Netherlands Amsterdam, which includes liquid fuels terminals in Amsterdam and Bantry Bay. The Amsterdam terminal is located in the Port of Amsterdam, which serves as an international hub for the global energy market and is part of the largest refined product trading port in Europe. The Bantry Bay terminal is the largest independent bulk liquids storage terminal in Ireland and provides storage for Ireland’s strategic oil reserve.
The transaction is expected to close in the first quarter of 2024, Sunoco reported.
“The acquisition will provide supply optimization for [Sunoco’s] existing East Coast business,” the company said.