7-Eleven has made the largest acquisition in its history and one of the largest to be announced since the pandemic began.
The convenience store giant has entered into an agreement to acquire Speedway, a leading convenience store chain, from Marathon Petroleum Corp. As part of the deal, 7 Eleven will acquire approximately 3,900 Speedway stores located in 35 states, for $21 billion in cash.
With more than 9,800 stores in the U.S., 7-Eleven said its stores and Speedsay’s locations have complementary geographic footprints with little overlap. Following the transaction, 7 Eleven will have a presence in 47 of the top 50 most populated metro areas in the U.S., and a total of about 14,000 stores in the U.S. and Canada.
"This acquisition is the largest in our company's history and will allow us to continue to grow and diversify our presence in the U.S., particularly in the Midwest and East Coast," said Joe DePinto, president and CEO, 7 Eleven. "By adding these quality locations to our portfolio, 7 Eleven will have the opportunity to bring convenience to more customers than ever before."
7 Eleven said it plans to form an integration steering committee with representatives from the leadership of both 7–Eleven and Speedway. The company said it looks forward to welcoming the approximately 40,000 members of the Speedway team into the 7 Eleven family and integrating best practices of both companies.
In October 2019, Marathon agreed to spin off its convenience-store chain, known as Speedway, under pressure from activist investors including Elliott Management Corp.
The transaction is subject to customary regulatory approvals and closing conditions and is expected to be completed in the first quarter of 2021.
“Our announcement crystalizes the significant value of the Speedway business, creates certainty around value realization and delivers on our commitment to unlock the value of our assets,” Marathon CE0 Michael Hennigan said in a statement.