Financial terms of the transaction were not disclosed. The company said it anticipates that stores operating under the White Hen Pantry brand will begin converting to the 7-Eleven brand in 2010.
White Hen was a chain of approximately 260 mostly franchise-owned convenience [image-nocss] stores located in the greater Chicago and New England areas. In 2001, owner Clark Retail Enterprises Inc. sold all 55 of its White Hen Pantry stores in Massachusetts and New Hampshire to New England Pantry. This deal allowed New England Pantry to become a subfranchisor of the White Hen Pantry brand, and its exclusive franchisor in the New England area.
In August 2006, White Hen Pantry was purchased by Japan's Seven & I Holdings Co., owner of Dallas-based 7-Eleven Inc., and all but a few of the Chicago-area locations were converted to the 7-Eleven brand. It maintained a master franchising agreement with New England Pantry that allowed that company to continue to operate the White Hen franchise in New England.
As reported yesterday in a CSP Daily News Flash, the new acquisition significantly expands 7-Eleven's presence in the greater Boston area, bringing the number of outlets 7-Eleven operates and franchises to more than 170.
"We already had a master licensee agreement with the New England Pantry owner. Our strategy is to grow where we already have a concentration of stores. We announced earlier this year that we are aggressively growing and seeking acquisitions where they make sense," 7-Eleven spokesperson Margaret Chabris told CSP Daily News.
"The idea has been on the radar since the White Hen Chicago acquisition," she added.
"This acquisition significantly strengthens our convenience offering in greater Boston," said Bob Cozens, vice president for 7-Eleven's Northeast Division. "White Hen Pantry has a 40-year history of providing good customer service and high-quality products to consumers in the Boston area, and we want to continue that tradition."
Andy Brothers, who has served as the New England White Hen Pantry stores CEO, joins 7-Eleven's management team and will support the transition, said, "The acquisition of New England Pantry by 7-Eleven will provide our customers, franchisees and employees with additional opportunities by joining the leading convenience retailer's store network. Franchises will be able to capitalize on 7-Eleven's brand strength, extended line-up of proprietary and private label products, and proven business system."
Brothers and the New England Pantry management team will continue to work out of the Norwood office.
Chabris told The Patriot-Ledger that 7-Eleven officials are meeting with White Hen franchisees this week to talk about converting their stores to the 7-Eleven bane. "Nothing is changing right at the moment," she said. "It's going to take time to do the conversions."
Houston-based Sanders Morris Harris Group is a wealth management company that manages approximately $10.6 billion in client assets. Client assets include the gross value of assets under management directly or via outside managers and assets held in brokerage accounts for clients by outside clearing firms.
7-Eleven operates, franchises or licenses approximately 8,000 stores in North America. Globally, it operates, franchises or licenses more than 37,100 stores in 16 countries. During 2008, 7-Eleven stores worldwide generated total sales of more than $53.7 billion.
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