7-Eleven Acquires 204-Store Portfolio From Sunoco for $1 Billion

Retail chain 7-Eleven Inc. has completed its acquisition of 204 stores from Sunoco LP, including Stripes convenience stores and Laredo Taco Co. restaurants. This deal, initially announced in January and valued at around $1 billion, expands 7-Eleven's presence in West Texas, New Mexico, and Oklahoma.

Integration of Brands

These newly acquired properties add to 7-Eleven's portfolio, which first included Stripes and Laredo Taco Co. in a $3.3 billion acquisition from Sunoco in 2018. With this latest transaction, 7-Eleven now owns and operates all Stripes and Laredo Taco locations, bolstering its network to over 13,000 convenience stores across the U.S. and Canada.

Financial Implications

Sunoco LP plans to utilize the proceeds from this sale to reduce existing debt and explore growth opportunities, particularly in the gasoline business. The company aims to expand its presence in Europe through the acquisition of liquid fuel terminals from Zenith Energy.

Amendments and Agreements

The 2018 purchase also involved a 15-year fuel supply agreement between Sunoco and 7-Eleven. This current transaction includes amendments to that agreement, such as provisions for future and additional fuel gross profit.

Retail Market Dynamics

The retail market has experienced upheavals, especially in the aftermath of the pandemic. Recovery has been non-linear, prompting owners and operators to implement various strategies to regain stability. The recent demise of 99 Cents Only Stores, resulting in numerous locations being put up for sale, underscores the ongoing shifts in the retail sector. As different potential buyers emerge, operators are assessing the broader implications for the industry's landscape.