Sprague Resources LP 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."