It is hard to see ETP's strategy with this acquisition. Just when ETP integrates its last acquisition and the company starts firing on all cylinders, they decide to expand into low margin retail. The speculation for some time was that ETP would divest SUN's retail side. Apparently, no takers so they decide let's expand instead. It will be interesting to hear the CEO's vision for this acquisition on the cc. this week. If the strategy does not make sense, the alarming part of this acquisition is that ETP says buying SUSS is the first step in creating "a stand-alone diversified retail business." Therefore, it looks like more of the same to come.
On the "Investor relations" page of the ETP website, there's a link to this morning's conference call describing the Susser acquisition. On the same page, you'll find a link to the official press release.
Management claims the acquisition will be immediately accretive to DCF.
They absolutely overpaid by a good $100 million. That $70 million in benefits should be $170 million. They also failed to state that this would be accretive to the distribution. Lucky for Susser shareholders - the shorts just got fried.