By OGJ editors
HOUSTON, Feb. 7 -- Sunoco Inc. of Philadelphia signed a definitive agreement Friday with a unit of Findlay, Ohio-based Marathon Ashland Petroleum LLC (MAP) to acquire 193 of its US Southeast retail outlets fro $140 million plus store inventory.
MAP, though its wholly owned retail unit Speedway SuperAmerica LLC (SSA), Enon, Ohio, inked the deal to sell all of its outlets in Florida, South Carolina, North Carolina, and Georgia.
Sunoco said it "has committed to offer employment to substantially all current SSA employees related to these units."
SSA currently owns more than 1,960 retail outlets in 13 states, most of which operate under the Speedway and SuperAmerica brand names.
The companies expect the deal to close by the second quarter.
Reaction
Following Sunoco's announced acquisition, Moody's Investors Service confirmed the company's Baa2 senior unsecured debt rating with a stable outlook. Moody's confirmed Sunoco's ratings "based on the strategic benefits of the acquisition, which include opportunities for the company to add high-return assets to its retail and convenience store network and to establish a greater retail presence in the southeastern United States," it said.
"The rating confirmation also reflects Moody's view that the financial leverage implications of the transaction are not unduly onerous. The outlook for Sunoco's ratings is stable and assumes management will continue to maintain conservative financial policies as it pursues its growth strategies," Moody's noted. "However," the agency noted, ". . .the outlook for refining and chemical margins is uncertain and. . .management remains interested in acquiring additional refining, marketing, and chemical assets."
