7-Eleven to Purchase TETCO Assets
DALLAS -- 7-Eleven Inc. has signed an agreement to purchase the retail and wholesale assets of San Antonio-based TETCO Inc. They include TETCO's company-operated convenience stores in Utah and the Dallas-Fort Worth, Austin and San Antonio areas of Texas, along with fuel distribution to TETCO's wholesale-distributors.
Terms of the deal were not disclosed; it is expected to close in November. Dallas-based 7-Eleven previously operated in the San Antonio market 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."
The acquisition of TETCO's motor fuel wholesale business affects approximately 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, 7-Eleven will remodel and rebrand most of the purchased locations. Signature 7-Eleven products such as Slurpees and Big Gulps, Big Bite hot dogs and the 7-Select private label.
7-Eleven expects to open at least 630 new locations in the U.S. and Canada during 2012, the company reported.