Acquisitions · Convenience stores
7-Eleven buys about 1,110 Sunoco convenience stores for $3.3 billion
- Buyer
- Seven & i Holdings (via 7-Eleven, Inc.) (Tokyo)
- Target
- About 1,110 Sunoco LP convenience stores, Dallas, Texas
- Value
- $3.3B cash plus inventory; ¥365,996M
- Status
- Agreed on April 6, 2017; completed in January 2018.
- Date
- 2017-04-06
Seven & i Holdings' US unit 7-Eleven, Inc. agreed to buy about 1,110 convenience stores from Sunoco LP of Dallas for $3.3 billion in cash plus fuel, merchandise and other inventories. The stores are in 19 regions, mainly along the East Coast and in Texas. The deal came with a 15-year fuel supply agreement with Sunoco.
Why it matters
The purchase adds a large block of fuel-and-convenience stores to 7-Eleven's US network in regions where it wanted more stores.
What 7-Eleven bought
Besides the stores, 7-Eleven acquired the Laredo Taco Company and Stripes trademarks and related intellectual property. Sunoco kept its Aloha Petroleum business in Hawaii, its franchisee-run APlus stores and its fuel supply business. About 200 other stores in North and West Texas, New Mexico and Oklahoma were left out and put up for sale separately.
Fuel supply deal
Under the 15-year take-or-pay agreement, Sunoco supplies about 2.2 billion gallons of fuel a year to a 7-Eleven subsidiary, with guaranteed annual payments, and 7-Eleven keeps using the Sunoco brand at stores that carry it. Sunoco said it would use the proceeds to repay debt. Closing was first expected in the fourth quarter of 2017.
Sources
Kakehashi M&A News home
