Marathon sells Marathon-brand gasoline through approximately 5,600 independently owned retail outlets in 20 states and the District of Columbia. Enon, Ohio-based Speedway LLC, an MPC subsidiary, owns and operates approximately 2,740 c-stores in 21 states. Speedway ranks No. 3 in CSP's 2017 Top 202 list of the largest c-store chains in the United States.
The Andeavor deal follows Speedway’s acquisition in mid-April of 78 Express Mart c-stores from Petr-All Petroleum Corp., Syracuse, N.Y.
Andeavor’s retail marketing system includes more than 3,200 outlets with fuel brands including Arco, SuperAmerica, Shell, Exxon, Mobil, Tesoro, USA Gasoline and Giant. About 1,100 of those are company-owned locations.
Formerly Tesoro Corp., the company changed its name to Andeavor in August 2017 following its $6.4 billion acquisition of El Paso, Texas-based Western Refining Inc. in June 2017.
The combined company will have about 4,000 company-owned and -operated locations and about 7,800 branded retail locations, Heminger said.
“For company-owned stores, we plan to leverage Speedway’s fully integrated home office, back-office and point-of-sale (POS) platforms to drive earnings growth,” he said. “We see potential for significant synergies through combined best practices and economies of scale throughout our entire retail network, which become nationwide in scope.”
For marketing, “strong recognized regional brands provide nationwide coverage to consumers and create additional channels to better serve our jobber, dealer and wholesale customers,” he said. “We think substantial opportunities exist to capitalize on the footprints both companies have built over time.”
The merger also offers the opportunity for nationwide expansion of Speedy Rewards, Speedway’s convenience retail loyalty program, Heminger said.