7-Eleven Completes TETCO Acquisition
The assets include 163 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 dealers. This acquisition -- the terms of which were not disclosed -- signals 7-Eleven's return to San Antonio, where the company hasn't operated stores since 1989.
Because of the combination of TETCO's retail and wholesale operations, this is 7-Eleven's largest acquisition since the company accelerated its growth plan four years ago.
As part of this purchase, 7-Eleven is acquiring TETCO's motor fuel wholesale dealer business with some 500 customers. The company plans to retain and build the wholesale gasoline business as an integral part of 7-Eleven's overall growth strategy.
"The TETCO convenience store locations we are purchasing are very high-quality sites," said Stan Reynolds, 7-Eleven's executive vice president and chief financial officer. "They not only complement areas where we currently operate, but the stores in San Antonio allow 7-Eleven to strategically expand its footprint in Texas."
7-Eleven will remodel and rebrand the bulk of these locations over the next year. Customers can expect more outlets for its fresh foods delivered daily, hot foods and signature products like its 7-Select private brand, 7-Eleven coffee, Big Bite hot dogs, Slurpee and Big Gulp drinks.
Through traditional store development, business conversions and acquisitions, 7-Eleven plans to open at least 630 new locations in the United States and Canada this year. The company currently operates, franchises or licenses more than 9,400 7-Eleven stores in North America.