Convenience store giant makes $3.3 billion acquisition
7-Eleven has accelerated its U.S. expansion by entering into the largest acquisition in its history.
The c-store retailer has agreed to buy the Sunoco chain of gas stations, which includes some 1,108 convenience stores located in 18 states, for a reported $3.3 billion.
"This acquisition supports our growth strategy in key geographic areas including Florida, mid-Atlantic states, Northeast states, and Central Texas," said Joe DePinto, president and CEO of 7-Eleven Inc. "It also provides 7-Eleven entry into Houston, the 4th largest city in the United States, and a strong presence in Corpus Christi and across South Texas.”
As part of the transaction, Sunoco will enter into a 15-year take-or-pay fuel supply agreement with a 7-Eleven subsidiary, under which Sunoco will supply approximately 2.2 billion gallons of fuel annually, csenews reported.
The sale of these retail assets to 7-Eleven is the beginning of an exciting evolution for Sunoco into a premier nationwide fuel supplier," said Bob Owens, president and CEO, Sunoco. "Our supply agreement with 7-Eleven provides Sunoco with a predictable long-term income stream, and this transaction quickly allows Sunoco to improve its financial profile."
7-Eleven, the U.S. division of Japan’s Seven & i Holdings Co., has 8,707 stores in the United States and Canada. The acquisition will bring company’s total number of stores to 9,815 (in the U.S. and Canada).
The transaction is expected to close in the second half of this year.
The c-store retailer has agreed to buy the Sunoco chain of gas stations, which includes some 1,108 convenience stores located in 18 states, for a reported $3.3 billion.
"This acquisition supports our growth strategy in key geographic areas including Florida, mid-Atlantic states, Northeast states, and Central Texas," said Joe DePinto, president and CEO of 7-Eleven Inc. "It also provides 7-Eleven entry into Houston, the 4th largest city in the United States, and a strong presence in Corpus Christi and across South Texas.”
As part of the transaction, Sunoco will enter into a 15-year take-or-pay fuel supply agreement with a 7-Eleven subsidiary, under which Sunoco will supply approximately 2.2 billion gallons of fuel annually, csenews reported.
The sale of these retail assets to 7-Eleven is the beginning of an exciting evolution for Sunoco into a premier nationwide fuel supplier," said Bob Owens, president and CEO, Sunoco. "Our supply agreement with 7-Eleven provides Sunoco with a predictable long-term income stream, and this transaction quickly allows Sunoco to improve its financial profile."
7-Eleven, the U.S. division of Japan’s Seven & i Holdings Co., has 8,707 stores in the United States and Canada. The acquisition will bring company’s total number of stores to 9,815 (in the U.S. and Canada).
The transaction is expected to close in the second half of this year.