Sunoco to pay $600 million for Offen Petroleum in latest fuel distribution deal
PHILADELPHIA, Aug. 12. A $600 million deal will hand Sunoco control of Offen Petroleum, a Colorado-based fuel distributor that delivers roughly 2.5 billion gallons annually to more than 800 retail stations across the Midwest, Mountain West, and Southwest, the companies announced last week. Sunoco expects the transaction to close in the fourth quarter of 2026. The announcement came two days after Sunoco's second-quarter earnings call, where executives said strong first-half cash generation would allow the company to surpass the $500 million bolt-on acquisition budget it had set at the start of 2026.
Key takeaways
- Sunoco agreed to pay $600 million to acquire Colorado-based fuel distributor Offen Petroleum, the companies announced last week.
- Offen delivers roughly 2.5 billion gallons of fuel annually to more than 800 retail stations across the Midwest, Mountain West, and Southwest.
- Sunoco expects the transaction to close in the fourth quarter of 2026 and says it will be immediately accretive.
- At $600 million, the deal on its own exceeds the $500 million full-year bolt-on acquisition target Sunoco set for 2026.
- Offen has been backed by private equity for roughly eight years, most recently by Court Square Capital Partners, which bought it from Lariat Partners in 2019.
PHILADELPHIA, Aug. 12. A $600 million deal will hand Sunoco control of Offen Petroleum, a Colorado-based fuel distributor that delivers roughly 2.5 billion gallons annually to more than 800 retail stations across the Midwest, Mountain West, and Southwest, the companies announced last week. Sunoco expects the transaction to close in the fourth quarter of 2026. The announcement came two days after Sunoco's second-quarter earnings call, where executives said strong first-half cash generation would allow the company to surpass the $500 million bolt-on acquisition budget it had set at the start of 2026.
What Sunoco is acquiring
Sunoco said Offen's geographic footprint complements its existing distribution operations and creates additional opportunities for organic growth and further acquisitions. The deal is expected to be immediately accretive and to generate additional cash flow for distribution growth and reinvestment, the company said. No financial terms beyond the $600 million headline were disclosed.
Offen's ownership history
Offen was founded in the 1930s and rebranded under its current name in the 1960s. Bill Gallagher and his sister Gwen acquired the Colorado-based distributor in 1997, according to its website. The company expanded through numerous acquisitions over the past decade. Private equity firm Lariat Partners announced an investment in January 2018, then sold its ownership interest to Court Square Capital Partners in 2019. Offen has been backed by private equity for roughly eight years ahead of the Sunoco deal. Representatives from Sunoco and Court Square declined to provide further comment on the transaction; Offen did not respond to a request for comment by press time.
Sunoco's acquisition record
The Offen purchase extends a run of deal-making at Sunoco. The company acquired Parkland for more than $9 billion last year and completed several smaller convenience-store acquisitions in the first half of 2026. Sunoco had set $500 million as its 2026 bolt-on target, and executives said on the Q2 earnings call that strong first-half cash generation had created room to exceed that figure. The Offen deal, at $600 million, exceeds the full-year target on its own.