Delek US Wraps Up Sale of Retail Assets
BRENTWOOD, Tenn. — Delek US Holdings has officially exited retail operations.
The company completed the transaction to sell 100% of equity interests in the Delek subsidiaries that operate its retail business, Delek US Retail, to a subsidiary of FEMSA. The deal, which was announced on Aug. 1, carried a $385 million price tag, including the purchase of inventories.
"The completion of the sale of Delek US Retail to FEMSA is an important step in our value creation journey. We are pleased with this transaction and look forward to building upon our relationship with FEMSA in the future," said Delek President and CEO Avigal Soreq. "I am thankful to Delek US Retail and its employees, and wish them success as they become an important part of FEMSA's growth strategy in the United States."
Delek US Retail comprises 249 corporate stores operating primarily in the southwestern United States, including convenience stores in Texas and New Mexico. Delek operates company stores primarily under the DK brand. Roughly 90% of the stores are in Texas.
The transaction marks FEMSA entry into the U.S. convenience store channel.
At the time the deal was announced, José Antonio Fernández Garza-Lagüera, CEO of FEMSA's retail operations, said the company had "a long-held ambition to enter the U.S. convenience and mobility industry and this transaction represents the ideal way for us to take our first step in this compelling market."
FEMSA is one of the largest conglomerates in Mexico with operations in more than 17 countries. Through FEMSA's Proximity & Health Division it operates OXXO — the largest small-format proximity store operator in the Americas with more than 22,800 stores in five countries, including Mexico, Colombia, Chile, Peru and Brazil. It also has more than 570 OXXO Gas fuel and service stations in Mexico.
Additionally, it is the largest franchise bottler of Coca-Cola products in the world by volume through Coca-Cola FEMSA.
The international retailer traces its roots back to 1890 when the founding a brewery in Monterrey, Mexico.
Brentwood-based Dele US Holdings is a diversified downstream energy company with assets in petroleum refining, logistics, pipelines and renewable fuels. The refining assets consist primarily of refineries operated in Tyler and Big Spring, Texas; El Dorado, Ark.; and Krotz Springs, La., with a combined nameplate crude throughput capacity of 302,000 barrels per day.
The logistics operations include Delek Logistics Partners LP, a growth-oriented master limited partnership focused on owning and operating midstream energy infrastructure assets.