7-Eleven acquires 3,900 Speedway stores
An all cash, $21 billion acquisition, 7-Eleven Inc. has picked up 3,900 Speedway stores from Marathon Petroleum Corp., expanding the retailer’s footprint to 14,000 locations.
The growth offers up potential for 7-Eleven to further push its grab-and-go items and private brand portfolio of 7-Select and 24/7 Life products. Combined, those brands already exceed a $1 billion business for the retailer.
The Speedway stores will be in 35 states in the United States, and 7-Eleven said the two convenience retailers have complementary geographic overlap in the United States and Canada. The retailers will also work together to integrate best practices to deliver products and promotions based upon customer demand and continue both companies' legacy of innovation, per the announcement. The companies will also maximize efficiencies among supplier relationships and business partners.
"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," said Joe DePinto, president and chief executive officer, 7‑Eleven. "By adding these quality locations to our portfolio, 7‑Eleven will have the opportunity to bring convenience to more customers than ever before."
The store growth puts 7-Eleven in 47 of the top 50 metro areas in the United States. Speedway, with annual pre-synergy run-rate EBITDA of approximately $1.5 billion prior to the acquisition, will help 7‑Eleven reach $475 million to $575 million of run-rate synergies.
7-Eleven has created a steering committee to help merge the company and integrate the 40,000 Speedway employees.