Susser to Acquire Sac-N-Pac Convenience Stores

Transaction expands retail and wholesale fuel distribution reach in South Central Texas

PR Newswire

HOUSTON and CORPUS CHRISTI, Texas, Nov. 14, 2013 /PRNewswire/ -- Susser Holdings Corporation (SUSS) and Susser Petroleum Partners LP (SUSP) today announced the signing of a definitive agreement to acquire substantially all of the convenience store assets and fuel distribution contracts of Sac-N-Pac Stores, Inc. and 3W Warren Fuels, Ltd. 

Sac-N-Pac owns and operates 47 convenience stores in the rapidly growing South Central Texas corridor between San Antonio and Austin. 3W Warren Fuels supplies approximately 65 million gallons of motor fuel annually to the 47 Sac-N-Pac locations and to approximately 20 independent dealer locations. Sac-N-Pac operates branded food service concepts in six stores and operates its proprietary food service concept in nine stores.

Stripes LLC, the convenience store subsidiary of Susser Holdings, plans to acquire and initially operate the convenience store properties under the Sac-N-Pac brand until it is determined which stores will be branded Stripes® and which stores may be converted to the wholesale platform.  Initially, 10-15 stores have been identified as stores that could accommodate Laredo Taco Company® restaurants without substantial alterations to the existing buildings. Susser Petroleum Partners will acquire the third-party fuel supply contracts and will supply motor fuel to the convenience stores.  Additionally, Stripes LLC is acquiring seven parcels of land for future development of Stripes/Laredo Taco Company units. 

The transaction is subject to customary conditions to closing, including satisfactory completion of due diligence, and is expected to close in the first quarter of 2014 and to be accretive to both SUSS and SUSP. Terms of the transaction were not disclosed.

"This is another instance where the combination of our wholesale and retail platforms work together to create great value in making a strategic acquisition like Sac-N-Pac and Warren Fuels.  We are pleased to expand our retail and wholesale operations in this rapidly growing area of Texas.  We have tremendous respect for the fine retail and fuel distribution businesses that the Warren family has built, and we welcome the many dedicated employees at Sac-N-Pac to the Susser organization," said Sam L. Susser, Chairman and Chief Executive Officer of Susser Holdings.

Blair Warren and Cheryl Warren Cuppetilli of the Warren family said, "This decision was a difficult one given our close ties with our communities and the relationships we have built with our employees and business associates.  Sac-N-Pac and the Warren family are pleased to have entered into this agreement with a company that we believe will be a good partner with the communities we have served for the last 50 years.  We also want to thank our employees for their many years of loyal and dedicated service to the Sac-N-Pac mission."

Susser Holdings Corporation is a third-generation family led business based in Corpus Christi, Texas that operates approximately 575 convenience stores in Texas, New Mexico and Oklahoma under the Stripes® banner. Restaurant service is available in over 370 of its stores, primarily under the proprietary Laredo Taco Company® brand. Susser Holdings also is majority owner and owns the general partner of Susser Petroleum Partners LP, which distributes over 1.5 billion gallons of motor fuel annually to Stripes® stores, independently operated consignment locations, convenience stores and retail fuel outlets operated by independent operators and other commercial customers in Texas, New Mexico, Oklahoma and Louisiana.

Forward-Looking Statements

This news release contains "forward-looking statements."  These statements are based on current plans and expectations and involve a number of risks and uncertainties that could cause actual results and events to vary materially, including changing competitive dynamics in the geographic regions in which Sac-N-Pac and 3W Warren Fuels operate, which could impact the their profitability and negatively affect their contribution to Susser's results of operations.

Additionally, the general business risks associated with Susser Holdings' and Susser Petroleum's respective businesses could impact the ability to integrate Sac-N-Pac and 3W Warren Fuels in the manner or within the timeframe contemplated by management, or to fully achieve anticipated synergies or long-term growth.  For a full discussion of those general business risks, please refer to the "Risk Factors" section of Susser Holdings' annual report on Form 10-K for the year ended December 30, 2012 and subsequent quarterly reports on Form 10-Q as well as the "Risk Factors" section of Susser Petroleum's annual report on form 10-K for the year ended December 31, 2012 and subsequent quarterly reports on Form 10-Q. These forward-looking statements are based on and include our estimates as of the date hereof. Subsequent events and market developments could cause our estimates to change. While we may elect to update these forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if new information becomes available, except as may be required by applicable law.




Contacts:



Susser Holdings Corporation


Dennard - Lascar Associates

Susser Petroleum Partners LP


Anne Pearson, Senior Vice President

Mary Sullivan, Chief Financial Officer


(210) 408-6321, apearson@dennardlascar.com

(361) 884-2463, msullivan@susser.com


Ben Burnham, Vice President



(773) 599-3745, bburnham@dennardlascar.com

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