Sunoco LP Announces Fuel Distribution Acquisitions and Strategic
Divestiture of its Ethanol Facility
DALLAS, Jan. 18, 2019 /PRNewswire/ --Sunoco LP (NYSE: SUN) ("Sunoco") announced the completion of the
acquisition of the wholesale fuel distribution business from Schmitt Sales, Inc. and the execution of a denitive
agreement to acquire certain convenience store locations from Speedway LLC. Sunoco will convert the acquired
convenience store locations to wholesale distribution sites.
Combined, these wholesale fuels businesses distribute approximately 180 million gallons of fuel annually
across a network of dealer and commission agent-operated locations in the Upstate New York, Ohio,
Pennsylvania and West Virginia markets.
Total consideration for both acquisitions is approximately $50 million plus working capital adjustments.
These acquisitions are consistent with Sunoco's strategy of utilizing its scale to grow the core fuel distribution
business. Sunoco will fund the transactionswith cash on hand and amounts available under its revolving credit
facility, while continuing to maintain its targeted leverage ratio. These transactions are expected to be
accretiveto Sunocowith respect to distributable cash ow in the rst year.
Additionally, Sunoco announced the execution of a denitive asset purchase agreement with Attis Industries
Inc. (NASDAQ: ATIS) ("Attis") for the sale of Sunoco's ethanol plant, including the grain malting operation, in
Fulton, New York. As part of the transaction, Sunoco will enter into a 10-year ethanol otake agreement with
Total consideration for the divestiture is $20 million in cash. Sunoco expects to use the proceeds to repay
indebtedness as it continues to maintain its targeted leverage ratio. The transaction is subject to regulatory
clearances and customary closing conditions and is expected to close in the rst quarter of 2019.
About Sunoco LP
Sunoco LP (NYSE: SUN) is a master limited partnership thatdistributes motor fuel to approximately 10,000
convenience stores, independent dealers, commercial customers and distributors located in more than 30
states. Sunoco's general partner is owned by Energy Transfer Operating, L.P., a subsidiary of Energy Transfer LP