Sunoco to Acquire NuStar Energy for $7.3B
Motor fuels distributor Sunoco announced the acquisition of liquids terminal and pipeline operator NuStar Energy for approximately $7.3 billion in an all-stock deal, including debt.
Sunoco will issue 0.4 shares, worth about $23.78 per share based on Friday’s closing price, for each NuStar share, nearly a 32% premium to NuStar’s closing price of $18.03.
Sunoco has secured a $1.6 billion, 364-day bridge term loan to refinance NuStar’s preferred shares, subordinated notes, revolving credit facility and receivables financing agreement.
The company said the deal will be immediately accretive with 10%-plus accretion to distributable cash flow per LP share by the third year following the close. It sees at least $150 million of run-rate synergies by the third year following the close.
The transaction has been unanimously approved by the board of directors of both companies and is expected to close in the second quarter of 2024.