Sunoco LP purchasing wholesale fuel distribution, terminaling business

June 28, 2016

Sunoco LP announced a definitive agreement to purchase the fuels business from Emerge Energy Services LP for $178.5 million, subject to working capital adjustments. The Fuels Business comprises Dallas TX-based Direct Fuels LLC and Birmingham AL-based Allied Energy Company LLC, both wholly owned subsidiaries of Emerge, and engages in the processing of transmix and the distribution of refined fuels.

The fuels business includes two transmix processing plants with attached refined product terminals located in the Birmingham and greater Dallas metro areas. Combined, the plants can process over 10 thousand barrels per day of transmix, and the associated terminals have over 800 thousand barrels of storage capacity.

"We are pleased to add the Emerge Fuels Business to the existing Sunoco operating platform," said Bob Owens, Sunoco's president and chief executive officer. "This transaction is consistent with our strategy of expanding our business through the acquisition of assets that are both complementary to our core wholesale and retail network and that further diversify Sunoco's income stream."

The transaction is expected to be immediately accretive to Sunoco with respect to distributable cash flow. It is expected to close during the third quarter of 2016 and is subject to regulatory clearances and the satisfaction of other customary closing conditions.