Sunoco to sell 1,110 U.S. stores to 7-Eleven operator for $3.3 billion
By Taiga Uranaka and Vishaka George
(Reuters) - Sunoco LP (SUN.N: Quote) said on Thursday it would sell 1,110 convenience stores to Japan's Seven & i Holdings Co (3382.T: Quote) for $3.3 billion as the Texas-based company shifts its focus to its fuel supply business.
Sunoco's shares jumped as much as 24 percent to $29.50 on Thursday - their biggest intraday percentage rise in three years.
As part of the deal, the U.S. company will also supply about 2.2 billion gallons of fuel annually for 15 years to a unit of the operator of 7-Eleven chain of convenience stores.
Sunoco, a publicly-traded partnership controlled by pipeline operator Energy Transfer Equity (ETE.N: Quote), operates about 1,350 retail fuelling sites and convenience stores under brands such as APlus and Stripes, the company's website showed.
The company said it planned to sell another 200 stores by the end of the fourth quarter and expand its distribution business, partly through acquisitions.
Energy Transfer's chief financial officer, Thomas Long, said there are no plans to dissolve the partnership.
Energy Transfer wants Sunoco to remain a standalone business and continue on the M&A front to expand its business, Long said. "That is very much the directive."
Sunoco said it expected to use the proceeds from the sale primarily to repay debt, which was about $4.51 billion as of December. Continued...