Irving, TX — 7-Eleven, Inc. the largest chain in the convenience-retailing industry, has entered into an agreement to acquire Speedway LLC from Marathon Petroleum Corp. As part of the agreement, 7-Eleven will acquire approximately 3,900 Speedway stores located in 35 states, for $21 billion in cash.
“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,” says Joe DePinto, president and CEO of 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.”
According to the company, this move accelerates 7-Eleven’s growth trajectory and diversifies its presence in the U.S., noting the two chains have complementary geographic footprints with little overlap. 7-Eleven currently has more than 9,800 stores in the U.S. and Canada and Speedway acquisition will bring its total number of stores to approximately 14,000 in the U.S. and Canada. Following the transaction, 7-Eleven will have a presence in 47 of the top 50 most populated metro areas in the U.S.
In addition, with annual pre-synergy run-rate EBITDA of approximately $1.5 billion prior to the acquisition, Speedway offers opportunities for future growth. 7-Eleven reports it 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.
7-Eleven notes it plans to form an integration steering committee with representatives from the leadership of both 7–Eleven and Speedway.