7-Eleven To Buy TETCO Assets

TexasBusiness.com


7-Eleven To Buy TETCO Assets   | dal_ftw_txbz, aust_txbz, sanant_txbz,Tetco,7-Eleven,

Texas Business reports: DALLAS—7-Eleven Inc. agreed to acquire the retail and wholesale assets of San Antonio-based TETCO Inc.

The assets include 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 deal were not disclosed, and closing is expected in November.

The acquisition also signals a return to San Antonio for 7-Eleven, where the company had operated stores until 1989.

“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 7-Eleven chief financial officer Stan Reynolds in a prepared statement. “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,” Reynolds said.

After the deal closes later this year, 7-Eleven will begin remodeling and rebranding the bulk of these locations. Customers in these areas can expect more outlets for 7-Eleven's fresh foods delivered daily, hot foods and signature products like 7-Select private brand, 7-Eleven coffee, Big Bite hot dogs, Slurpee and Big Gulp drinks.

As the global leader of convenience retailing, 7-Eleven continues to grow its business in the U.S. through traditional store development, business conversions and acquisitions. The company expects to open at least 630 new locations in U.S. and Canada in 2012.

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.

 7-Eleven, Inc. is the largest chain in the convenience retailing industry. Based in Dallas, 7-Eleven operates, franchises or licenses approximately 9,400 7-Eleven stores in North America. Globally, there are 47,600 7-Eleven stores in 16 countries. During 2011, 7-Eleven stores worldwide generated total sales close to $76.6 billion.