UDS Continues Expansion

SAN ANTONIO -- Ultramar Diamond Shamrock (UDS) yesterday announced the acquisition of 22 convenience stores in five separate transactions. Terms of the deals were not disclosed.

UDS, which said it would rebrand all of the newly acquired units to Diamond Shamrock Corner Stores by the end of the year, acquired a 3,000-square-foot store from Trejo Oil in Mesa, Ariz. The Arco-branded unit has an extensive foodservice program, which includes a co-branding agreement with the McDonald?s. The company also bought three stores in the growing Phoenix market from Giant Industries Inc.

In November, UDS said it acquired 10 stores in Lubbock, Texas from Equilon Enterprises LLC. The stores, all branded Texaco, are located on high-volume corners and include car washes. Additionally, the company purchased three outlets in Lubbock from McClain Oil Co.

The company's final deal includes five stores in San Antonio from Atlanta-based Racetrac Petroleum Inc. The sale of these retail units ends Racetrac?s presence in the San Antonio market.

"Each of the sites we are acquiring are modern, attractive and complement our existing network of stores," said Steve Motz, UDS? senior vice president of marketing operations. "The outlets will fit nicely into our retail growth strategy in key markets served from our core refining operations."

The acquisitions boost to 1,500 the number of convenience stores UDS owns and operates. The company also maintains a branded network of 3,500 units.

Earlier this year, UDS said it would be acquired by San Antonio-based Valero Energy Corp. to create a $35 billion oil powerhouse. When approved, the acquisition would make Valero the second-largest refiner in the United States with 13 refineries and more than 5,000 convenience stores in the United States and Canada.