US convenience retailer 7-Eleven has announced the acquisition of the retail and wholesale assets of Texas firm Tetco for an undisclosed sum.
The deal will see 7-Eleven take on Tetco's company-owned convenience outlets in Utah and the Dallas-Fort Worth, Austin and San Antonio areas.
The company has announced a number of acquisitions in recent years as it has aggressively expanded its business in the US.
This year, 7-Eleven has bought stores in Texas, North Carolina and South Carolina.
Last year, the retailer acquired 188 stores when it took over Wilson Farms and purchased 183 sites from ExxonMobil in Florida.
According to CFO Stan Reynolds, the Tetco acquisition is the largest of 7-Eleven's recent acquisitons and will see the company take on a number of "quality sites".
Show the press release
7-Eleven Signs Agreement to Purchase TETCO AssetsDALLAS, Aug. 14, 2012
/PRNewswire/ -- 7-Eleven, Inc. today announced that it has signed an agreement to acquire the retail and wholesale assets of San Antonio-based TETCO, Inc. The assets include company-operated convenience stores in Utah and the Dallas-Fort Worth, Austin and San Antonio areas of Texas plus fuel distribution to TETCO's wholesale-distributors.Terms of the deal were not disclosed, and closing is expected in November.
The acquisition also signals a return to San Antonio for 7-Eleven, where the company had operated stores until 1989.
"The combination of TETCO's retail and wholesale operations will make this 7-Eleven's largest acquisition since the company accelerated its growth plan four years ago," said Stan Reynolds, 7-Eleven executive vice president and CFO. "The assets we are purchasing are quality sites that complement our existing store operation along the I-35 corridor. Plus, we are fortunate to work with seasoned convenience- and fuel-business people that are joining us from TETCO."
As part of this purchase, 7- Eleven will acquire TETCO's motor fuel wholesale business with some 550 customers. "We fully expect to retain and build this wholesale business, as an integral part of our overall growth strategy," added Reynolds.
After the deal closes later this year, 7-Eleven will begin remodeling and rebranding the bulk of these locations. Customers in these areas can expect more outlets for 7-Eleven's fresh foods delivered daily, hot foods and signature products like 7-Select private brand, 7-Eleven coffee, Big Bite® hot dogs, Slurpee® and Big Gulp® drinks.
As the global leader of convenience retailing, 7-Eleven continues to grow its business in the U.S. through traditional store development, business conversions and acquisitions. The company expects to open at least 630 new locations in U.S. and Canada in 2012.Other significant-sized acquisitions 7-Eleven have made in the past year include the 188-store Wilson Farms, Inc. purchase and the 183 sites from ExxonMobil in Florida, both in 2011.
Original source: 7-Eleven
