Alon USA Closes Skinny's Deal
Completes acquisition of 102 c-stores
DALLAS -- Alon USA Energy Inc. has closed its previously announced acquisition of Skinny's Inc., a privately held Abilene, Texas-based company that owned and operated 102 FINA-branded stores in central and West Texas. The purchase price was approximately $70 million, subject to post-closing adjustments.
By adding these 102 retail stores, we continue to build on our objective to expand the physical integration of our Big Spring refinery, said Jeff Morris, president and CEO of Alon. Over the next few months, we will be converting these stores to the 7-Eleven [image-nocss] brand, thereby solidifying our leadership position as the largest 7-Eleven licensee in the United States. We look forward to welcoming the Skinny's family, knowing that with their help we will make a successful transition.
The Davis family, the owners of the Skinny's chain, have purchased fuel through Alon USA for more than a decade. Morris said when the deal was announced in early March that it was the relationship between the two companies that made the purchase an obvious decision. I've known [Skinny's president and CEO Joe Davis] for about 20 years now, Morris told CSP Daily News at the time. So [the deal] came from a long-term relationship. Whenever Joe reached the point where he wanted to consider selling the businessbecause of the relationship, [he knew] we could see value together and we ended up striking the deal.
Davis agreed. We are excited about the opportunity to join the Alon team under the 7-Eleven brand. Our cultures are founded on the same premise of serving the customer. Both of our companies are proud of our West Texas heritage, and we at Skinny's appreciate joining an organization that has operated the Big Spring Refinery for over 75 years.We are confident that our 102 stores will be a strong addition to Alon's existing 206 locations, he said in March.
Alon USA Energy, Dallas, is an independent refiner and marketer of petroleum products, operating primarily in the south central, southwestern and western regions of the United States. The company owns and operates four sour and heavy crude oil refineries in Texas, California and Oregon, with an aggregate crude oil throughput capacity of approximately 170,000 barrels per day.It markets gasoline and diesel products under the FINA brand name. Alon also operates more than 300 convenience stores in West Texas and New Mexico under the 7Eleven and FINA brands and supplies motor fuels to these stores from its Big Spring refinery.In addition, Alon supplies approximately an additional 900 FINA-branded locations.