Delek selling its DK convenience-store business to Mexican conglomerate
A big new player is about to enter the U.S. convenience-store market.
Tennessee-based Delek US Holdings Inc., which operates 249 convenience stores under the DK brand, has entered into an agreement under which a subsidiary of FEMSA (Fomento Economico Mexicano) will acquire 100% of the equity interests in the Delek subsidiaries that operate Delek US Retail for $385 million in cash. DK stores are located primarily in Texas and New Mexico.
The transaction, which includes inventory, is anticipated to close sometime late in the third quarter or in the fourth quarter 2024.
FEMSA is one of the largest conglomerates in Mexico with operations in more than 17 countries. Through its proximity & health division the company FEMSA operates Oxxo, the largest small-format store operator in the Americas with more than 22,800 stores in five countries, including Mexico, Colombia, Chile, Peru and Brazil.
“At FEMSA, we have a long-held ambition to enter the U.S. convenience and mobility industry, and this transaction represents the ideal way for us to take our first step in this compelling market,” stated José Antonio Fernández Garza-Lagüera, CEO of FEMSA’s retail operations. “We have been building and expanding our retail operation in Mexico for over 45 years, eventually reaching ten other countries in South America and Europe, and a store base of more than 30,000 locations. As we welcome our new DK colleagues into the FEMSA family, we are excited to embark on this new and important journey together.”
Delek US Holdings is a diversified downstream energy company with assets in petroleum refining, logistics, pipelines, renewable fuels and convenience store retailing.
“The sale of Delek US Retail to FEMSA is an incremental step in our commitment to unlock the sum of the parts value inherent in our system,” said Avigal Soreq, president, and CEO of Delek. “We are pleased with this transaction and expect to execute on additional steps to unlock value for our stakeholders. Importantly, it allows us to gain a competitive partner for ongoing and expanded retail fuel sales. We look forward to building on this partnership with FEMSA in both the short and long-term.”
Delek’s exclusive financial advisor was Raymond James & Associates, Inc. and legal advisor was Baker Botts L.L.P.
