7-Eleven Closes TETCO Acquisition
"Very high-quality sites" expand, complement retailer's Texas footprint
DALLAS -- 7-Eleven Inc. has announced that it has acquired the retail and wholesale dealer assets of San Antonio-based TETCO Inc., closing a deal that was announced Aug. 14 (see Related Content below for previous CSP Daily News coverage). 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.
The company did not disclose the terms of the deal.
The acquisition signals a return to San Antonio for 7-Eleven, where the company had operated stores until 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 executive vice president and CFO. "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 most of these locations over the next year. Customers in these areas can expect more outlets for 7-Eleven's fresh foods delivered daily, hot foods and signature products like 7-Select private brand, 7-Eleven coffee, Big Bite hot dogs, Slurpee and Big Gulp drinks.
The company continues to grow its U.S. business through traditional store development, business conversions and acquisitions. The company plans to open at least 630 new 7-Eleven locations in the United States and Canada this year.
Dallas-based 7-Eleven operates, franchises or licenses more than 9,400 7-Eleven stores in North America. Globally, there are some 48,100 7-Eleven stores in 16 countries. During 2011, 7-Eleven stores worldwide generated total sales close to $76.6 billion.