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Sunoco Acquires NuStar Energy in $7.3 Billion Transaction  

Plus: Raytheon awarded $154 million contract by the United States Army, Lumin Fitness—founded by the former CEO of Gold's Gym—strikes its first franchise agreement, and more.
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After recently selling off over 200 of its convenience stories to 7-Eleven for around $1 billion, Sunoco, one of the largest fuel distribution companies in the U.S., has made another transaction. This time, Sunoco is the buyer acquiring NuStar Energy, an independent liquids and terminal pipeline operator, in an all-equity transaction valued around $7.3 billion, including assumed debt. 

NuStar Energy has roughly 9,500 miles of pipeline with 63 terminal and storage facilities that help store and distribute crude oil, renewable fuels, refined products, specialty liquids, and ammonia. With nearly 49 million barrels of storage capacity, NuStar also has operations in Mexico.

For Sunoco, the deal allows the company to move forward with its capital allocation strategy on a grander scale, thus growing its distribution and improving its credit profile. After distancing itself from convenience store operations in the 7-Eleven sale, this acquisition of NuStar Energy will help push Sunoco into the benefits of vertical integration—specifically, Sunoco will see nearly $50 million per year of additional cash flow from the refinancing of high-cost floating rate capital. 

The transaction is expected to be officially completed in the second quarter of 2024 once the closing conditions have been satisfied.  

Raytheon Awarded $154 Million Contract With the U.S. Army 

Raytheon, the world’s largest aerospace and defense company, was awarded $154 million by the United States Army to deliver Commander’s Independent Viewer (CIV) systems to upgrade the branch’s Bradley Fighting Vehicles. The units will be produced at Raytheon’s McKinney campus.

CIV is an infrared/electro-optical sight system that uses forward-looking infrared cameras and sensors to provide the Bradley Fighting Vehicle with 360-degree oversight on the battlefield and targeting capabilities. The production of the CIV units will increase Raytheon’s product portfolio with more than 25,000 second-generation FLIR sensors delivered in the last two decades. 

“The CIV is a package of multiple systems all working together to increase the survivability and battlefield performance of the Bradley Fighting Vehicle,” Bryan Rosselli, president of Advanced Products and Solutions at Raytheon said. “These capabilities—early threat detection, 360-degree battlefield view, and all-weather performance—increase a vehicle commander’s ability to locate, identify and defeat stationary and moving targets in any condition—day or night.” 

Production delivery is expected in June 2026.  

RTX, the parent company of Raytheon, has over 185,000 employees worldwide with not only Raytheon under its umbrella, but Collins Aerospace and Pratt & Whitney as well. It reported $68.9 billion in sales in 2023. 

Lumin Fitness Inks First Franchise Agreement with Verge 

Lumin Fitness, an AI-powered fitness studio concept based in Dallas founded by former Golds Gym CEO, has signed a 13-unit development deal with its first franchise partner, Houston-based Verge Fit Holdings. Verge operates nearly 200 franchises in the U.S. with brands such as Hilton Hotels, Marriott, and T-Mobile. 

“Verge isn’t just our first franchise partner; they are a testament to our commitment to cultivating a network that values quality over quantity,” Craig Sherwood, the chief development officer at Lumin Fitness said. “Our goal is to create an exclusive club of strong multi-unit operators who are as invested in our success as we are in theirs.” 

Founded in 2019, Lumin Fitness uses its proprietary technology to create interactive and individualized personal training in the boutique fitness space for a gamified experience. The brand launched its first studio in Irving-Las Colinas in 2023.

Now the company is set to expand to other locations in Dallas, as well as new locations in Austin and Houston over the next three years with its agreement with Verge. 

“We were actively exploring opportunities to diversify our portfolio, seeking a concept that not only aligned with our investment criteria but also presented a substantial growth opportunity. When we were introduced to Lumin Fitness, it immediately resonated with us. The uniqueness of the business model and technology, the experience of the team and the potential for scalability were exactly what we were looking for.” Raheel Suria, partner at Verge said. 

UNT Dallas Receives $2 Million Grant from Communities Foundation of Texas for Endowed Position 

The University of North Texas at Dallas received a $2 million grant from Communities Foundation of Texas, creating the first endowed position in the university’s history to help support and sustain the eventual Executive Director of the Caruth Police Institute at UNT Dallas. 

CPI is a law enforcement leadership and training institute. The endowment fund donated by CFT for the position encompasses salary, research and academic advancements, engagement in scholarly activities, and other annual costs. 

“CFT has been proud to be the founding funder in the creation of the Caruth Police Institute. We are equally excited to be the first investor in the creation of what is the first endowed position in police best practices, but also the first endowed position role at the University of North Texas at Dallas,” CPO Wende Burton said. “The Caruth Police Institute at UNT at Dallas continues to demonstrate its expansive leadership in police innovation, research, and excellence. We hope this investment inspires other schools to follow their example and encourages other funders to get involved.” 

The endowed position will continue to allow UNT Dallas and CPI to improve police-community relationships, provide a hub for police development and research, promote accountability and transparency in policing, and serve quality police training in Texas. The executive director will also help assist UNT Dallas and the city of Dallas in the building of a new state-of-the-art regional law enforcement training center. 

“The establishment of the first endowed position in police best practices at UNT Dallas has the potential to resonate beyond borders. As a model of innovation and collaboration, we hope the individual in this role can inspire similar initiatives in neighboring cities, in Texas and across America. This ripple effect could even foster a global network of institutions dedicated to shaping the future of policing in a more equitable and just manner,” Dr. Monica Williams, vice president for University Advancement and president of the UNT Dallas Foundation says. 

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Layten Praytor

Layten Praytor

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