Sunoco To Sell 204 Convenience Stores To 7-Eleven For $1 Bln

(RTTNews) - Sunoco LP (SUN) has announced that it has entered into a definitive agreement with 7-Eleven to sell 204 convenience stores located in West Texas, New Mexico, and Oklahoma for approximately $1 billion.

As part of this deal, SUN will also add extra fuel gross profit to its current take-or-pay fuel supply contract with 7-Eleven. The sale price will be subject to customary adjustments for inventory of merchandise and fuel and is expected to close soon after regulatory approvals.

The sale is expected to enable SUN to maintain a solid balance sheet and multi-year distribution growth while significantly reducing leverage to take advantage of future growth opportunities.

SUN also stated its plans to acquire one hundred percent of the equity interest in Zenith Energy Netherlands Amsterdam B.V., which includes liquid fuels terminals in Amsterdam, Netherlands, and Bantry Bay, Ireland.

Following the conclusion of the relevant Dutch Works Council consultation and information processes, which are presently in progress, the final purchase agreement will be signed and the purchase price declared.

This acquisition will be financed by SUN's revolving credit facility and is expected to conclude in the first quarter of 2024.

The company also reaffirmed its 2024 adjusted EBITDA guidance range of $975 million to $1 billion.