by BRAD ROLLINS
Corpus Christi-based Susser Holding Corp., the parent company of the Stripes convenience store chain, has completed its acquisition of San Marcos-based Sac-N-Pac and its correlative fuel supplier.
Susser paid $88 million for Sac-N-Pac Stores Inc. and 3W Warren Fuels Ltd., which supplied gasoline and diesel to Sac-N-Pac’s 47 locations in central Texas and 20 other independent convenience stores, Susser spokesperson Jessica Davila-Burnett said. Warren Fuels moved about 65 million gallons of motor fuel annually as a distributor for Exxon, Shell and Valero.
The newly acquired stores will initially continue to operate under the Sac-N-Pac brand, but some may be changed at some point to Stripes, Davila-Burnett said. Susser also acquired five properties owned by Sac-N-Pac as possible future store locations and options to purchase two other properties.
While visiting friends in San Marcos in 1965, Garland Warren and his wife, Janelle, went to the town’s only store at closing time where the manager was setting a mousetrap on the counter; milk the couple bought for their babies was expired, according to the company’s official history. Warren saw an opportunity.
Moving here the next year, they opened up shop at the intersection of Hopkins and Moore streets and began building a small empire. Today, there are 17 Sac-N-Pac stores in San Marcos alone and 30 others in surrounding counties. In 1998, the chain was sold to Warren’s children, Blair, Blake and Cheryl. Following Garland Warren’s death in 2010, Cheryl Warren Cuppetilli and Blair Warren bought out Blake Warren’s interest in the company.
With 657 stores in Texas, New Mexico and Oklahoma, Stripes was the United States’ 23rd largest convenience store chain in 2013, according to retail industry consulting firm Kantar.
Here is the full press release from Susser:
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Susser Holdings Corporation (NYSE: SUSS) and Susser Petroleum Partners LP (NYSE: SUSP) today announced the closing of their previously announced acquisition of the convenience store assets and fuel distribution contracts of Sac-N-Pac Stores, Inc. and 3W Warren Fuels, Ltd.
The Sac-N-Pac chain includes 47 convenience stores in the rapidly growing South Central Texas corridor between San Antonio and Austin. Sac-N-Pac operates its proprietary food service concept in 23 stores, six of which also include a branded food service concept. 3W Warren Fuels supplied approximately 65 million gallons of motor fuel annually to the 47 Sac-N-Pac locations and to approximately 20 independent dealer locations. SUSP has taken over the wholesale fuel supply for all of these locations, which are currently branded under Exxon, Shell and Valero flags.
The acquisition is expected to be accretive to both SUSS and SUSP. The total purchase price was approximately $88 million plus inventories. All 47 of the Sac-N-Pac stores are fee properties. The acquisition also includes one stand-alone branded quick-serve restaurant, five raw tracts of land for future store development and the right to acquire two additional tracts. SUSS plans to initially operate all of the 47 stores under the Sac-N-Pac brand. Over time, the Company may elect to convert some of the sites to the Stripes brand, may add the Laredo Taco Co. brand to certain locations or may elect to convert some sites to the Company’s wholesale dealer network.
Susser Holdings Corporation is a third-generation family led business based in Corpus Christi, Texas that operates 627 convenience stores in Texas, New Mexico and Oklahoma, with 580 under the Stripes® banner and 47 under the Sac-N-Pac banner. Restaurant service is available in approximately 400 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 approximately 1.6 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.