Dive Brief:
- 7-Eleven Inc. has agreed to buy more than 200 convenience stores from Sunoco for about $1 billion, including adjustments for fuel and merchandise inventories, according to a Thursday press release.
- The stores, including the remaining Stripes and Laredo Taco Company locations in the U.S., are in West Texas, New Mexico and Oklahoma. There were no specific guidelines on when the deal would close, but it’s expected to close “promptly upon receipt of regulatory approvals and satisfaction of customary closing conditions.”
- This acquisition will put all Stripes and Laredo Taco locations under 7-Eleven’s umbrella.
Dive Insight:
7-Eleven’s latest deal cements its full ownership of both the Stripes and Laredo Taco brands, which it has had partial control over for the past handful of years. In 2017, 7-Eleven acquired more than 1,000 Stripes locations from Sunoco for $3.3 billion, according to news reports from the time. It also purchased the Laredo Taco brand at that time as well.
Thursday’s announcement officially pulls all these locations under 7-Eleven’s ownership. It marks 7-Eleven’s largest acquisition since its pickup of 3,800 Speedway stores across 36 states in 2021.
"Stripes and Laredo Taco Company have been a great addition to our family of brands since they initially joined us back in 2018," said Joe DePinto, CEO of 7-Eleven, Inc. "We're excited to welcome the remaining Stripes stores and Laredo Taco Company Restaurants to the family.”
Also part of the sale, Sunoco will amend its existing take-or-pay fuel supply agreement with 7-Eleven to incorporate more fuel gross profit. Proceeds from this $1 billion sale will help Sunoco reduce leverage and maintain a strong balance sheet moving forward, the company said.
Based in Dallas, Sunoco LP is a master limited partnership whose business includes the distribution of motor fuel to approximately 10,000 convenience stores, independent dealers, commercial customers and distributors in more than 40 U.S. states and territories.
Irving, Texas-based 7-Eleven has 83,000 stores across 19 countries and regions, including over 13,000 in the U.S.
