IRVING, Texas — Convenience store giant 7-Eleven Inc. is set to strengthen its position by acquiring the rival Speedway chain from Marathon Petroleum Corp. for $21 billion in cash.
As part of the agreement, 7-Eleven will acquire approximately 3,900 Speedway stores in 35 states. The move will give 7-Eleven about 14,000 stores in the United States and Canada.
“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,” 7-Eleven president and CEO Joe DePinto said in a statement. “By adding these quality locations to our portfolio, 7-Eleven will have the opportunity to bring convenience to more customers than ever before.”
The move will accelerate 7-Eleven’s growth trajectory and diversifies its presence in the U.S., the company said, noting that Speedway and 7-Eleven have complementary geographic footprints with little overlap. Following the transaction, 7-Eleven will have a presence in 47 of the top 50 most populated metro areas in the U.S., positioning the company as a clear industry leader in a fragmented industry with favorable macroeconomic trends.
The company said the move will also strengthen 7-Eleven’s financial position. 7-Eleven expects to achieve $475 million to $575 million of run-rate synergies through the third year following closing, while maintaining financial flexibility and a strong balance sheet, the company said, adding that the deal will leave it better positioned to continue to pursue profitable growth opportunities. The combined store network should also significantly enhance economies of scale for the convenience store retailer.