DALLAS -- 7-Eleven Inc. has signed an agreement to purchase Wilson Farms Inc., the Buffalo, N.Y.-based convenience store chain with 188 outlets in the state of New York, with an expected closing in the second quarter. Terms of the deal were not disclosed.
7-Eleven said that it will invest in remodeling the stores, adding proprietary beverages, like Big Gulp fountain and Slurpee drinks, coffee service and fresh foods. It will hire local contractors for the remodeling program to begin later this year. Additionally, the company will introduce its proprietary retail information [image-nocss] system to the Wilson Farms stores to provide store personnel with leading technology to serve their customers' needs.
The addition of Wilson Farms significantly increases 7-Eleven's presence in the western New York area. Post closing, 7-Eleven will assume responsibility for all Wilson Farms locations and personnel from the WFI Group, which--as reported yesterday in a CSP Daily News Flash announcing the acquisition--is led by Bruckmann, Rosser, Sherrill & Co. (BRS), a private-equity firm, and the Nanula Family, which together have managed the stores since 2005.
"Wilson Farms has a successful store operation, quality locations and a strong customer-service culture," said Stan Reynolds, 7-Eleven executive vice president and CFO. "The combination of the two companies will strengthen our convenience offering in the western New York area."
He added, "Consumers can expect to benefit from 7-Eleven's greater concentration of stores in this area, introduction of private brands and other proprietary products. Like Wilson Farms, 7-Eleven is committed to bringing customers quality fresh food, good value and friendly service."
Paul Nanula, president and CEO of Wilson Farms, said, "Wilson Farms has been a successful convenience chain serving customers and communities in the New York area for over forty years. The WFI group has owned the brand for the past six years, making significant progress in growing the business. It is a testament to the entire employee base of Wilson Farms and the business that we operate that 7-Eleven was interested in acquiring our chain."
Added Nanula: "On behalf of our 2,500 associates, I'd like to thank our loyal customers for their patronage and continued support. I am confident that these stores will continue to serve the public, and that the winning combination of 7-Eleven and Wilson Farms will further strengthen the convenience offering for our customers."
Wilson Farms began as a division of Tops in 1969. In 1991, the convenience chain was sold to Ahold along with 59 Tops supermarket locations, and Tops acquired the Sugarcreek-branded stores in May of 2000. In 2005, the Nanula Family partnered with BRS and Dan Shanahan, Wilson Farms' CFO, to purchase the Wilson Farms and Sugarcreek stores from Tops Markets.
Tom Baldwin, managing director of BRS, said, "Our partnership with Wilson Farms has been very positive. Since our investment in 2005, the company has demonstrated strong financial performance, including growth throughout the recent recession. The entire organization has contributed to this success, and we wish them all the best."
BMO Capital Markets acted as exclusive financial advisor to BRS and the Nanula family in the sale of Wilson Farms to 7-Eleven.
7-Eleven continues to grow its business by adding stores through traditional store development, business conversions and acquisitions. Sites from ExxonMobil in Florida and Illinois, certain Shell sites in Dallas, Quarles Petroleum Inc., Mother Hubbard's Cupboard, Zooms Inc., New England Pantry and Little Sue are among the company's most recent acquisitions.
The company is franchising its stores in the United States and is expanding through organic growth, acquisitions and its Business Conversion Program (BCP).
Dallas-based 7-Eleven operates, franchises or licenses more than 8,400 stores in North America. Globally, there are more than 40,500 7 stores in 16 countries. During 2010, 7-Eleven stores worldwide generated total sales of more than $62.7 billion.
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