“Sunoco will continue with a platform for the iconic Sunoco fuel brand and successful APlus [c-store retail] franchise,” said Gomez, the Sunoco spokesperson. “All of our APlus franchise stores will remain an important aspect of our business.” There are about 400 APlus stores, according to company reports.
“Sunoco’s transaction with 7-Eleven is the first step in Sunoco’s strategic shift away from company-operated convenience stores to focus on its industry-leading fuel supply business,” she said. “Led by the iconic Sunoco fuel brand and successful APlus franchise, Sunoco plans to be a leading consolidator in the domestic wholesale fuels business, supplying fuel to a network of more than 8,900 locations of third-party dealers, distributors and other commercial customers.”
The deal with 7-Eleven also excludes Aloha Petroleum, with 54 retail locations in Hawaii, which Sunoco will not divest and “will remain a part of Sunoco,” Owens said during the conference call.
“Both of those assets are key to us going forward, things we’re interested in growing,” he said. “Aloha Petroleum continues as a highly efficient, integrated, standalone operation within Sunoco, and our successful APlus franchise offer will continue to be an area that will grow.”
And Sunoco is no longer in the business of building new-to-industry (NTI) c-stores.
“In terms of the fragmented nature of the industry as the major oil companies divested all ownership of real estate in the United States—that environment still exists, and we think there’s a real part for us to play in that as that rollup continues, working with partners that we currently have and looking to M&A activity to grow the business on the wholesale side in addition to more midstream-type of asset opportunities,” Miller said.
- Click here to read part II of this report, Why 7-Eleven Is Buying.