Mergers & Acquisitions

CrossAmerica to Acquire 106 C-Stores From 7-Eleven

Seller divesting sites as part of Speedway deal with Marathon Petroleum
crossamerica

ALLENTOWN, Pa. — Convenience-store wholesaler and retailer CrossAmerica Partners LP has entered into an agreement to acquire 106 c-store properties from 7-Eleven Inc. for $263 million. The properties consist of company-operated sites that 7-Eleven is selling as part of the divestiture process in connection with its previously announced acquisition of the Speedway c-store business from Marathon Petroleum Corp.

The sites are located in regions of the United States within CrossAmerica’s existing asset base. Most operate under the Speedway brand, and CrossAmerica plans to rebrand all of them.

These locations sold a total of approximately 160 million gallons of motor fuel during the 12-month period ended Oct. 31, 2020, in addition to aggregate merchandise sales of approximately $134 million, according to unaudited financial information provided to CrossAmerica.

“We are excited to acquire these high-quality assets that are complementary to our existing footprint and will allow us to benefit from increased scale in our retail operations,” said Charles Nifong, president and CEO of CrossAmerica. “The transaction provides excellent value to the partnership and represents continued execution of the strategic plan we set in action last year.”

The acquisition is subject to the completion of 7-Eleven’s transaction with Marathon Petroleum and Federal Trade Commission (FTC) approval, as well as other customary conditions. CrossAmerica expects to close on its acquisition of these sites on a rolling basis, beginning approximately 60 to 90 days after the closing of 7-Eleven’s transaction with Marathon Petroleum. It said it expects the acquisition to be immediately accretive to distributable cash flow to limited partners, and it expects to finance the transaction through undrawn capacity under its existing revolving credit facility, cash on hand or additional debt financing from other sources.

7-Eleven’s $21 billion transaction of Speedway is set to be among the biggest in the history of the c-store industry. In August 2020, Findlay, Ohio-based Marathon Petroleum entered into a definitive agreement to sell its 3,900-unit Speedway c-store chain to Irving, Texas-based 7-Eleven Inc., a wholly owned, indirect subsidiary of Seven & i, Tokyo. The companies expect the deal to close in second-quarter 2021.

Allentown, Pa.-based CrossAmerica is a wholesale distributor of motor fuels, convenience store operator and owner and lessee of real estate used in the retail distribution of motor fuels. Its general partner, CrossAmerica GP LLC, is indirectly owned and controlled by entities affiliated with Joseph Topper Jr., the founder of CrossAmerica Partners and a member of the board of the general partner since 2012. Formed in 2012, CrossAmerica Partners LP is a distributor of branded and unbranded petroleum for motor vehicles in the United States and distributes fuel to approximately 1,700 locations and owns or leases approximately 1,100 sites. With a geographic footprint covering 34 states, it has relationships with several major oil brands, including ExxonMobil, BP, Shell, Chevron, Sunoco, Valero, Gulf, CITGO, Marathon and Phillips 66. CrossAmerica ranks as one of ExxonMobil’s largest distributors by fuel volume in the United States and in the top 10 for additional brands.

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