7-Eleven Acquires 204 Stores from Sunoco for $1B

In 2023, the largest players kept getting bigger in the convenience store sector, particularly for chains that combine stores and gas stations. It looks like 2024 is off to a good start.

7-Eleven Inc. has announced an agreement to acquire 204 stores from Sunoco in a deal worth about $1B. The acquisition includes Stripes convenience stores and Laredo Taco restaurants in locations across West Texas, New Mexico and Oklahoma.

With the addition of the 204 stores in the Southwest, 7-Eleven will own and operate all Stripes and Laredo Taco locations across the U.S., adding to a chain that includes more than 13,000 outlets across the U.S. and Canada.

“Stripes and Laredo Taco Company have been a great addition to our family of brands since they initially joined us in 2018. We’re excited to welcome the remaining Stripes stores and Laredo Taco restaurants to our family,” said Joe DePinto, CEO of 7-Eleven, in a statement.

As part of the sale, Sunoco said it will also amend its existing take-or-pay fuel supply agreement with 7-Eleven to incorporate addition fuel gross profit.

“Proceeds from the sale will allow Sunoco to materially reduce leverage to execute on future growth opportunities while maintaining a strong balance sheet and multi-year distribution growth,” Sunoco said, in a press release.

In 2023, several leading convenience store players secured major acquisitions and expanded their footprints in a battle for regional as well as national hegemony.

In April, Maverik-Adventure’s First Stop and its parent company, FJ Management, acquired Kum & Go, a family-owned convenience store chain with more than 400 locations across 13 states, from Krause Group. The deal included the acquisition by Maverik of Solar Transport, a tank truck carrier and logistic provider owned by Krause.

The combination of Kum & Go and Maverick created a combined footprint of more than 800 outlets in 20 states across the Midwest and Rocky Mountain regions with a differentiated value proposition across fuel, food-service and in-store offerings.

BP, the British oil giant, early last year acquired TravelCenters of America (TA) for $1.3B in a cash deal. The acquisition included 281 highway locations in 44 states operating under the TA, Petro Shopping Centers and TA Express brands.

TA’s locations include more than 600 full-service and quick-service restaurants as well as gas stations and repair shops for cars and trucks. Each location averages encompasses about 25 acres. TA has been installing EV charging units at 200 of its U.S. locations.

BP, which operates about 2,000 North American gas station convenience stores under the BP, Amoco, Thornton’s and ampm brands, said it is aiming to expand the portfolio to 3,000 stores by 2030.

In August, Casey’s announced that it will add 63 stores to its portfolio from the EG Group. The agreement includes convenience stores in Tennessee and Kentucky that operate under the Minit Mart and Certified Oil brands. A few weeks later, Casey entered the Texas market by acquiring 22 Lone Star stores from W. Douglass Distributing.