'7-Eleven's Biggest Year for Store Growth Since 1986'

Acquiring 28 "noncore" PC&F sites in California, Oregon, Washington, Colorado

DALLAS & PLEASANTON, Calif. -- In a mutually beneficial deal that puts 7-Eleven Inc. on track for its biggest year of store growth since 1986 and allows Pacific Convenience & Fuels LLC to trim some noncore assets, 7-Eleven announced Monday that it has agreed to acquire the retail interests of 28 locations from PC&F.

As reported in a Morgan Keegan/CSP Daily News Flash late yesterday, the sites are located in the western half of the United States--in California, Oregon, Washington and Colorado.

The transaction is expected to close in fourth-quarter 2011, subject to closing conditions and regulatory approvals. Terms of the deal were not disclosed.

"This is a strategic acquisition for us, increasing our store footprint in several of our most successful markets," said Sean Duffy, 7-Eleven vice president of mergers and acquisitions. "Year to date, 7-Eleven has added more than 400 new locations, and 2011 promises to be 7-Eleven's biggest year for store growth since 1986."

PC&F general manager Chris Wilson said, "The sale of these assets from Pacific Convenience & Fuels represents the company's strategy of divesting selected noncore assets, which strengthens the company and positions PC&F for future opportunities."

The 28 sites include two unused parcels of land. All of the locations will eventually be rebranded as 7-Eleven store operations, and all will retain the ConocoPhillips/76 gasoline brands, allowing customers to continue to purchase branded fuel and use their existing credit cards issued under that brand.

After the transaction closes late this year, 7-Eleven will start remodeling and rebranding the locations, with the bulk of the work anticipated to be completed by the end of 2012. Approximately 15 stores will require only interior and imaging changes, which should be completed by the end of the year, while the balance will undergo more extensive remodeling.

Once remodeled and rebranded, each store will carry 7-Eleven signature products, such as Slurpee and Big Gulp beverages, fresh food and grill offerings, along with 7-Select products (7-Eleven's private brand) and standard convenience store items.

All stores will be available for franchise.

7-Eleven plans to extend job offers to the majority of PC&F employees who are affected by this acquisition upon successful completion of their pre-employment screening process and continued satisfactory performance.

Pacific Convenience & Fuels is based in Pleasanton, Calif., and currently owns more than 570 stores in California, Colorado, Nevada, Oregon, Texas and Washington through multiple channels of trade including company owned and operated, fee operated and dealer operations.

Currently, Dallas-based 7-Eleven operates and franchises more than 6,500 stores in the United States. It operates, franchises or licenses more than 8,800 7-Eleven stores in North America. Globally, there are approximately 42,700 7-Eleven stores in 16 countries. During 2010, 7-Eleven stores worldwide generated total sales close to $63 billion.