MIAMI -- Miami is hot again, and not just in the muggy summer months, but economically and as a market for convenience-store operators. That’s what Arturo Zizold and his colleagues at Victory Petroleum experienced as they just sold the bulk of their stores to 7-Eleven.
Zizold, CEO of the Miami-based Victory Petroleum, spoke to CSP Daily News about some of the motivations behind the sale, which included assets from two companies--Biscayne Petroleum LLC and Everglades Petroleum LLC—that translated to 94 controlled real-estate locations, seven fuel-supply-only contracts and some related assets.
Both Biscayne Petroleum and Everglades Petroleum were formed in 2011 for the purpose of acquiring convenience stores and gas stations that were being sold by ExxonMobil Corp.
As the buyers, Dallas-based 7-Eleven Inc. and its wholly owned subsidiary, SEI Fuel Services Inc., now have a stronger foothold in Miami, Dade, Palm Beach and Broward counties, with a few sites in the city of Naples.
Zizold and Carlos Fontecilla owned the vast majority of the real estate at these sites, and after that transaction, have about 50 stores remaining that they continue to operate.
While Zizold declined to comment on specifics of the 7-Eleven transaction, he did provide some background on the deal and the market:
Q: At what stage is the deal with 7-Eleven?
A: We closed that deal Monday, Nov. 9. It included all our legacy Mobil stations we acquired in 2011.
Q: Why did you decide to sell?
A: It was a difficult decision. They were high-performing, high-volume sites, and we were pleased with running them, but a year ago, we went through a time of exploring strategic alternatives during an extremely competitive landscape. In the end, we ended up selling to 7-Eleven. It was a thoughtful process, something we took our time to decide.
Q: Many c-store chains are getting into Florida. Why is that?
A: I can only speak for South Florida. There’s different pockets. I know Wawa and Sheetz have come in strong as of two or three years ago along the Tampa-Orlando corridor, but we’re in South Florida. From that perspective, the economy is strong. Miami is growing in population, particularly because of its proximity to Latin America. That’s helping economic activity. Frankly, when the real-estate market crashed, Miami was the first major metro area to fall, but it was also the first market to bounce back. We’re seeing a lot of construction and a real-estate boom. It’s not just retailers, but everyone wants to spend time in Miami.
Q: We hear Florida is also friendlier for businesses.
A: Partly yes, but that changes within the state and even within South Florida. There are differences from county to county.
Q: Having bought the Mobil sites just five years ago, how would you describe the M&A climate today versus then?
A: It has changed quite drastically. Everything from cash flows to valuation multiples to who the actual groups looking to buy are. We’re seeing the larger wholesalers trying to become larger and the MLPs [master limited partnerships]. … The landscape has definitely changed.
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