Sprague Resources LP Completes Acquisition Of Hess' Commercial Fuels Business
PORTSMOUTH, N.H., Jan. 2, 2014 /PRNewswire/ -- Sprague Resources LP (NYSE: SRLP) ("Sprague") announced today that it has completed the acquisition of the Commercial Fuels business of Hess Corporation ("Hess") outside of the New York City service area for the purchase of inventory valued at $30 million on December 30, 2013. The transaction includes approximately 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," said David Glendon, CEO of Sprague Resources LP. "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."
About Sprague Resources LP
Sprague Resources LP is engaged in the purchase, storage, distribution and sale of refined petroleum products and natural gas. The company also provides storage and handling services for a broad range of materials.
This press release may include forward-looking statements. These forward-looking statements involve risks and uncertainties. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in Sprague's prospectus and SEC filings. Sprague undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
SOURCE Sprague Resources LP