7-Eleven to acquire Speedway from Marathon Petroleum for $21bn
7-Eleven acquisition of Speedway : Convenience stores company 7-Eleven has agreed to acquire the Speedway convenience store chain from US petroleum refining company Marathon Petroleum for $21 billion in an all-cash deal.
Under the terms of the deal, 7‑Eleven, which is a fully-owned, indirect subsidiary of Japan-based Seven & i Holdings, will acquire nearly 3,900 Speedway stores across 35 US states.
The acquisition, which is said to support 7‑Eleven’s growth strategy will increase its store count to almost 14,000 locations across the US and Canada.
Joe DePinto – President and CEO of 7‑Eleven, commenting on 7-Eleven acquisition of Speedway, said: “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.
“By adding these quality locations to our portfolio, 7‑Eleven will have the opportunity to bring convenience to more customers than ever before.”
The agreement between Marathon Petroleum and 7-Eleven includes a 15-year fuel supply deal for nearly 7.7 billion gallons per year related to the Speedway business. Marathon Petroleum said that it anticipates incremental opportunities over the course of time to supply the remaining business of 7-Eleven as existing arrangements mature and as the retailer adds new stores in connection with its announced growth strategy for the US and Canada.
In October 2019, Marathon Petroleum announced plans to spin off Speedway into an independent, publicly traded company.
Commenting on 7-Eleven acquisition of Speedway, Michael J. Hennigan – president and CEO of Marathon Petroleum, said: “This transaction marks a milestone on the strategic priorities we outlined earlier this year.
“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. At the same time, the establishment of a long-term strategic relationship with 7-Eleven creates opportunities to improve our commercial performance.”
7-Eleven acquisition of Speedway, which is subject to meeting of customary closing conditions and receipt of regulatory approvals, is expected to close in Q1 2021.