Sunoco LP has reached a definitive agreement to acquire Offen Petroleum in an all-cash transaction valued at approximately $600 million, expanding Sunoco’s U.S. fuel distribution network.

Sunoco announced the deal Aug. 6, saying Offen distributes approximately 2.5 billion gallons of fuel annually to about 7,000 customers and more than 800 retail stations across the Midwest, Mountain West and Southwest. The transaction is expected to close during the fourth quarter of 2026, subject to regulatory approval.

Commerce City, CO-based Offen is a wholesale distributor of fuel, lubricants, diesel exhaust fluid and premium additives serving retail, commercial and industrial customers. Its offerings also include propane and fuel-hauling services. The company operates locations across Colorado, Texas, Utah, Arizona and Missouri and has a team of more than 200 drivers.

Offen traces its roots to Reedy Coal and Fuel Company, founded in the late 1930s. Jim and Ester Offen purchased the business in 1967 and renamed it Offen Petroleum. Bill Gallagher and his sister Gwen acquired the company from the Offen family in 1997.

The distributor has since expanded organically and through a series of acquisitions. Recent deals include North Texas-based Douglass Distributing and Douglass Distributing Carriers in 2023, Chicago-based Gas Depot Oil Company in 2023 and the wholesale operations of Denver-based G&S Oil in 2022. Offen surpassed 2 billion gallons in annual fuel sales following its 2020 acquisition of Missouri-based Ozark Mountain Energy.

Offen also supplies branded fuel to hundreds of independent retailers and is one of the country’s largest distributors of unbranded fuels, serving customers including big-box retailers, trucking companies, fleets, railroads, construction companies and agricultural operations.

Sunoco said Offen’s geographic footprint complements its existing distribution operations and creates additional opportunities for organic growth and bolt-on acquisitions. The company expects the transaction to be immediately accretive and increase cash flow available for distribution growth and reinvestment.