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Sunoco acquires fuel distribution business, agrees to sell NY ethanol plant


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Sunoco acquires fuel distribution business, agrees to sell NY ethanol plant

Looking to grow its core fuel distribution business, Sunoco LP completed its acquisition of Schmitt Sales Inc.'s wholesale fuel distribution business and agreed to buy certain convenience store locations from Speedway LLC for about $50 million in total.

The Energy Transfer LP fuel distributor plans to convert the purchased convenience store locations to wholesale distribution sites, according to a Jan. 18 news release. The acquired businesses would move about 180 million gallons of fuel per year across dealer and commission agent-operated locations in upstate New York, Ohio, Pennsylvania and West Virginia.

The transactions will be funded by cash on hand and revolver debt. The deals would be accretive to Sunoco's distributable cash flow in the first year.

Separately, Sunoco agreed to sell its ethanol facility, including the grain malting operation, in Fulton, N.Y., to the technology company Attis Industries Inc. for a total cash consideration of $20 million. The agreement between the two parties includes a 10-year ethanol offtake deal.

Proceeds from the divestment will be used to repay debt. The sale is scheduled for completion in the first quarter.