Dive Brief:
- Sunoco has agreed to acquire fuel distributor Offen Petroleum for about $600 million.
- The deal, announced last week, includes Offen’s fuel distribution network, which delivers roughly 2.5 billion gallons annually to over 800 retail stations across the Midwest, Mountain West and Southwest, according to the announcement.
- Sunoco said Offen’s geographic footprint complements its existing distribution operations and creates additional opportunities for organic growth and acquisitions.
Dive Insight:
Sunoco has been one of the most acquisitive convenience and fuel retailers in recent years, having purchased Parkland for over $9 billion last year and several smaller c-store-focused businesses in the first half of 2026.
Earlier in 2026, the company earmarked $500 million for bolt-on acquisitions. During its Q2 earnings call last week — two days before announcing its purchase of Offen — Sunoco said it expected to exceed that target after a strong first half generated additional cash flow.
The Offen acquisition adds another major transaction to Sunoco’s recent M&A activity. The company expects the transaction to be immediately accretive and generate additional cash flow for distribution growth and reinvestment. Sunoco expects the deal to close in the fourth quarter of 2026.
Founded in the 1930s and rebranded under its current name in the 1960s, Offen was acquired by Bill Gallagher and his sister Gwen in 1997, according to its website. The Colorado-based distributor has expanded significantly through acquisitions, completing numerous deals over the past decade or so.
The transaction marks the latest change in ownership for Offen, which has been backed by private equity firms Lariat Partners and Court Square Capital Partners over the past eight years. Lariat announced its investment in Offen in January 2018 before selling its ownership interest in Offen to Court Square in 2019.
Representatives from Sunoco and Court Square declined to provide further comment on the transaction, while Offen did not respond by press time to a request for comment.
