Sprague Resources Acquires Hess' Commerical Fuels Business For $30 Million

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
30MM
Description

Acquired the commercial fuels business including existing supply contracts in 13 states on the East Coast.

Sprague Resources LP (NYSE: SRLP) ("Sprague") announced that it has completed the acquisition of the commercial fuels business of Hess Corp. (NYSE: HES) outside of the New York City service area for $30 million on Dec. 30.

The transaction includes about 10 million gallons of inventory; refined product purchase, sale and storage agreements; and the assumption of existing supply contracts to former Hess customers in 13 states along the East Coast. The assumed contracts represent an estimated 90 million gallons per year of refined product sales. Newly acquired customers include state and municipal transportation authorities, school districts, commercial customers and several major fleet operators.

"Sprague has been meeting the energy needs of commercial and industrial accounts since our founding in 1870," David Glendon, CEO of Sprague Resources, said in the release. "The successful acquisition of Hess' commercial fuels business and our welcoming of these premier customers is another exciting chapter in our history. We appreciate Hess' confidence in our ability to continue servicing these accounts and look forward to serving their needs for many years."

Sprague Resources LP is engaged in the purchase, storage, distribution, and sale of refined petroleum products and natural gas in the U.S. The company is based in Portsmouth, N.H.