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Thursday, April 6, 2017

=Sunoco LP (SUN) sells its convenience stores to 7-Eleven for $3.3 bln

TOKYO (Reuters) - Seven & i Holdings Co (3382.T) on Thursday said it would buy convenience stores and petrol stations from Texas-based Sunoco LP (SUN) for about $3.3 billion, as the Japanese retailer closes in on its goal to reach 10,000 North American outlets.
  • The operator of the 7-Eleven chain of convenience stores has been aggressively opening stores in Japan as well as the United States, where it has been acquiring stores from local retailers.
  • Seven & i has about 19,400 7-Eleven stores in Japan and 8,700 in the United States and Canada, including those run by franchisees. 7-Eleven Inc has said it aims to increase its number of stores to 10,000 over the three years through 2019.



Sunoco LP agrees to sell a majority of its convenience stores to 7-Eleven in a $3.3 bln deal:
Total consideration in the transaction is $3.3 billion in cash plus fuel, merchandise and other inventories. SUN expects to use the proceeds to repay indebtedness and for general partnership purposes.
  • Assets being sold to 7-Eleven include approximately 1,110 convenience stores in 19 geographic regions primarily along the East Coast and in Texas, and the associated trademarks and intellectual property of the Laredo Taco Company and Stripes. As part of the transaction, SUN will enter into a 15-year take-or-pay fuel supply agreement with a 7-Eleven subsidiary under which SUN will supply approximately 2.2 billion gallons of fuel annually. This supply agreement will have guaranteed annual payments to SUN, provides that 7-Eleven will continue to use the Sunoco brand at currently branded Sunoco stores and includes committed growth in future periods.
  • Approximately 200 convenience stores in North and West Texas, New Mexico and Oklahoma will be sold in a separate process. SUN's Aloha Petroleum business unit in Hawaii will continue to operate its highly efficient and integrated business model within SUN. Likewise, the transaction does not include SUN's highly successful APlus franchisee-operated stores.

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