Sunoco LP, in a transaction that it said is consistent with its strategy of using its scale to grow its core fuel distribution business, has acquired Brenco Marketing Corp., effective Oct. 16, 2018.
The Bryan, Texas-based wholesale fuels business distributes approximately 95 million gallons of gasoline and diesel annually across a network of about 160 dealer and commission agent-operated locations and 100 commercial accounts in central, southeastern and eastern Texas. Brenco additionally conveyed the fee-simple interests in six company-owned, commission agent-operated convenience-store locations and entered into a bulk plant lease with Sunoco as the lessee in this transaction.
The companies did not disclose the financial terms of the deal. Corner Capital Advisors, Lufkin, Texas, provided investment banking advisory services to Brenco MarketingSunoco is investing in wholesale and storage assets after selling most of its retail assets to 7-Eleven Inc., Irving, Texas, in a $3.3 billion deal that closed in January and converting more retail sites to a single commission agent, Cal’s Convenience, Frisco, Texas.
“Selling our family’s business was a tough and emotional experience,” said Donald Broach, CEO of Brenco Marketing Corp.
The Broach family has been associated with petroleum marketing since 1924, when J.S. Broach became the first Sinclair Oil & Refining Co. bulk agent in Brazos County, Texas. In 1974, J.S. Broach’s son, Kelley, took over the business. Over the next decade, Broach Oil Co. became one of the largest wholesale fuel distributors in Texas. In 1982, the company acquired a Shell jobbership and became the largest distributor of Shell products in the Eastern part of Texas. Kelley Broach’s sons, Donald Broach and Kenny Broach, vice president, have led and grown the business over the past 30 years.
Dallas-based Sunoco is a master limited partnership (MLP) that distributes motor fuel to approximately 9,900 retail stores, commission agent locations, independent dealers, commercial customers and distributors located in more than 30 states. Sunoco has approximately 80 company-operated sites including 54 Aloha Petroleum sites in Hawaii, about 400 commission-agent locations, about 2,700 dealer locations and about 3,800 distributor locations. Its general partner is owned by Energy Transfer Equity LP.