The board of directors of Tokyo-based Seven & i Holdings Co., Ltd., whose subsidiary 7-Eleven, Inc. operates in the United States, has agreed to acquire 1,108 gas stations and convenience stores from Philadelphia-based Sunoco LP (SUN) for more than $3.3 billion.
The stores to be acquired are located in Texas as well as across the eastern United States, and would represent a strong push by Dallas-based 7-Eleven to expand its U.S. footprint.
In fiscal 2016, SUN operated 1,345 stores with operating income of $103 million and total revenues of $7.7 billion. This compared with operating income of $205 million and total revenues of nearly $8.3 billion when the company operated 900 stores in fiscal 2015. The company’s brands include APlus and Stripes. Select APlus locations offer hot breakfast sandwiches, pizza and stromboli, as well as hot oatmeal from a countertop dispenser.
7-Eleven, meanwhile, operates about 8,700 stores in the United States and Canada, a total the company plans to push toward 10,000 by 2019. The convenience store chain offers fresh baked donuts and pastries, and a variety of hot-baked foods, including pizza.
“In accordance with the medium-term management plan for the Seven & i Group announced in October 2016, 7-Eleven, Inc. is aiming to achieve average daily merchandise sales per store of $5,000 and 10,000 stores by the fiscal year ending Feb. 29, 2020, and is working to strengthen its merchandizing capabilities and expand its store network,” Seven & i said. “SUN has a large number of stores in the State of Texas and the eastern area of the United States, where 7-Eleven, Inc. currently operates stores. By acquiring part of SUN’s the convenience store business and gasoline retail business, 7-Eleven, Inc. will expand its store network and offer greater convenience, while also improving profitability. Regarding the stores to be acquired, 7-Eleven, Inc. plans to sign a contract in the future to receive gasoline from SUN for the next 15 years.”