Convenience retailer 7-Eleven has agreed to acquire Marathon Petroleum-owned convenient store chain Speedway for $21bn in cash.
As part of this agreement, 7-Eleven will acquire approximately 3,900 Speedway stores located in 35 US states.
With this acquisition, 7-Eleven’s total number of stores will increase from over 9,800 to around 14,000 shops in the US and Canada.
The company expects to gain $475m to $575m of run-rate synergies through the third year following this deal.
The deal, financed by affiliates of Credit Suisse and Sumitomo Mitsui Banking Corporation (SMBC), is subject to customary regulatory approvals and closing conditions, expected for conclusion in the Q1 2021.
7-Eleven president and chief executive officer Joe DePinto said: “This acquisition is the largest in our company’s history and will allow us to continue to grow and diversify our presence in the US, particularly in the Midwest and East Coast.
“By adding these quality locations to our portfolio, 7-Eleven will have the opportunity to bring convenience to more customers than ever before.”
7-Eleven plans to set up an integration steering committee formed by representatives from both 7–Eleven and Speedway.
Approximately 40,000 members from Speedway will be integrated into the 7-Eleven family.
Nomura Securities International and Credit Suisse are serving as the financial advisors for 7-Eleven.
In April, 7-Eleven established a partnership with delivery platforms Postmates and DoorDash to expand its on-demand delivery capability.