DALLAS -- As 7-Eleven Inc. begins operating as a wholly owned subsidiary of Seven-Eleven Japan Co. and its parent company, Seven & I Holdings Co., it's doing so with an infusion of cash. Seven-Eleven Japan Co. is investing a combined $2.21 billion in two holding companies of 7-Eleven Inc., Dallas, that were recently established.
The new companies, SEJ Service LLC and SEJ Finance LLC, both located in Delaware, will be funded with $1.32 billion and $882 million (U.S.), respectively. Both companies were set up Nov. 7 as wholly owned subsidiaries [image-nocss] of the Japanese convenience store operator after a majority of stockholders accepted a tender offer for their shares of their company.
In other 7-Eleven news, Virgin Mobile USA announced Monday that it is expanding its handset distribution from 700 7-Eleven stores to 5,300 locations nationwide.
"The expansion of our distribution relationship is advantageous for 7-Eleven customers nationwide and for our company," said Joel Silverman, vice president of sales and distribution at Virgin Mobile USA. "In addition to broadening retail availability, this partnership reinforces our commitment to offering Virgin Mobile products in a wide array of venues frequented by the teen consumer. It also strengthens 7-Eleven's core value proposition of everyday convenience for people on the go."
"This combination is beneficial for customers," said Kevin Elliott, 7-Eleven's vice president of merchandising. "The Virgin brand is synonymous with youth, appealing to a generation of text messengers and cell-phone talkers. The mobile prepaid phones should do well in our stores."
Brad Haga, 7-Eleven's prepaid services category manager, said, "Mobile phones are on the top of teens' minds these days, and for parents a prepaid phone provides an easy way to monitor and budget their children's cellular service. With a simple trip to a 7-Eleven store to reload prepaid minutes, we offer both value and convenience."
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