DALLAS & SAN ANTONIO -- In a deal that signals its return to San Antonio, 7-Eleven Inc. has officially announced that it has signed a much-anticipated agreement to acquire the retail and wholesale assets of San Antonio-based TETCO Inc. The assets include approximately 200 company-operated convenience stores in Utah and the Dallas-Fort Worth, Austin and San Antonio areas of Texas plus fuel distribution to TETCO's wholesale-distributors.
Terms of the long-rumored deal were not disclosed. As reported in a Raymond James/CSP Daily News Flash in late July, the companies expect to complete the transaction in November.
The Dallas-based retailer operated stores in the San Antonio market until 1989.
After the deal closes later this year, 7-Eleven will begin remodeling and rebranding the bulk of these locations.
"The combination of TETCO's retail and wholesale operations will make this 7-Eleven's largest acquisition since the company accelerated its growth plan four years ago," said Stan Reynolds, 7-Eleven executive vice president and CFO. "The assets we are purchasing are quality sites that complement our existing store operation along the I-35 corridor. Plus, we are fortunate to work with seasoned convenience- and fuel-business people that are joining us from TETCO."
As part of this purchase, 7- Eleven will acquire TETCO's motor fuel wholesale business with some 550 customers. "We fully expect to retain and build this wholesale business as an integral part of our overall growth strategy," added Reynolds.
7-Eleven spokesperson Margaret Chabris declined to offer additional details on the acquisition for CSP Daily News until the deal is done.
TETCO operates stores in Texas, as well as Arizona, Colorado, Louisiana, Nevada, New Mexico, Oklahoma, Utah and Wyoming. The majority of its company-operated sites are in three markets: San Antonio, Dallas/Fort Worth and Austin, Texas. It has a strong dealer network and offers numerous services to the dealers through its Tetco Stores LP division. There are 756 locations in total, offering brands including Chevron, CITGO, Conoco, Exxon, FINA, Phillips 66, Ram, Shamrock, Shell, Texaco and Valero.
Meanwhile, 7-Eleven continues to grow its U.S. business through traditional store development, business conversions and acquisitions. The company expects to open at least 630 new locations in the United States and Canada in 2012, it said.
Other significant-sized acquisitions 7-Eleven have made in the past year include the 188-store Wilson Farms Inc. purchase and the 183 sites from ExxonMobil in Florida, both in 2011.
The company announced last week that it is selling 30 stores from among the Wilson Farms locations that do not fit its strategy (see Related Content below for previous CSP Daily News coverage of these and other 7-Eleven deals).
7-Eleven operates, franchises or licenses approximately 9,400 7-Eleven stores in North America. Globally, there are approximately 47,600 7-Eleven stores in 16 countries. During 2011, 7-Eleven stores worldwide generated total sales close to $76.6 billion.
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