7-Eleven Strikes Nearly $1B Deal With Sunoco for 204 Stores

IRVING, Texas — 7-Eleven Inc. will become the sole owner and operator of Stripes convenience stores and Laredo Taco Co. restaurants in the United States after acquiring 204 locations from Sunoco LP for $950 million.

The stores are located across west Texas, New Mexico and Oklahoma, and will join the more than 13,000 7-Eleven, Speedway and Stripes locations that 7-Eleven operates, franchises and/or licenses across the United States and Canada.

[Read more: 7-Eleven International LLC Inks $1.1B Acquisition Deal]

"Stripes and Laredo Taco Co. have been a great addition to our family of brands since they initially joined us back in 2018," said 7-Eleven Inc. CEO Joe DePinto. "We're excited to welcome the remaining Stripes stores and Laredo Taco Co. restaurants to the family, and we look forward to serving even more customers across west Texas, New Mexico and Oklahoma."

7-Eleven grew its U.S. store footprint by 12% when it acquired approximately 1,030 Sunoco c-stores for more than $3 billion in early 2018. Under the terms of the deal, Sunoco entered into a 15-year take-or-pay fuel supply agreement with a 7-Eleven subsidiary, under which Sunoco agreed to supply approximately 2.2 billion gallons of fuel annually.

At the time, DePinto said the acquisition supported the company's growth strategy in key geographic areas, and that it could learn a great deal about how to cater to the Mexican-American customer base in south Texas.

7-Eleven's parent company Seven & i Holdings Co. Ltd. noted that the new Sunoco deal is part of its broad strategic focus that centers on foodservice. Additionally, the acquisition will connect the 7-Eleven and Speedway network alongside the interstate highway, contribute to increase regional market share and accelerate growth in the North America market.

According to a released statement from Seven & i, 7-Eleven Inc. will focus on four key strategic areas in the medium-term:

1. Expanding the development and distribution of its proprietary products (fresh foods, proprietary beverages and private brands) to 34% of sales by 2025 while growing overall merchandise margins and continuing to strengthen the value chain;
2. In the 7NOW delivery business, aim for revenue of $1 billion by accelerating growth through its value proposal of high-value quality food and immediate consumables delivered fast;
3. Complete the overall integration with Speedway and realize $800 million synergies in 2023, aiming for further synergy expansion; and
4. Continue to pursue growth in the fragmented North American market through both mergers & acquisitions opportunities and organic new build stores.

Irving-based 7-Eleven Inc. operates, franchises and/or licenses more than 15,000 stores in the United States, Canada and Mexico.