NATIONAL REPORT – M&A news dominated several headlines in May, along with additional news from 7-Eleven and good signs for the convenience store industry this summer. In the latest Industry Roundup, we feature the 10 most read articles for the month of May, based on reader reviews:
1) Circle K launches the “Sip & Save” subscription program
US customers can enjoy a daily Polar Pop Fountain Drink, Froster Slush, coffee or tea of their choice for $ 5.99 per month. The program was originally scheduled to be rolled out in 2019, but has been delayed due to the COVID-19 pandemic.
2) Acquisition of Marathon Petroleum and 7-Eleven Close Speedway
Marathon Petroleum Corp. (MPC) completed the sale of Enon, Ohio-based Speedway LLC to 7-Eleven Inc. on May 14. The two companies closed the $ 21 billion deal in August. With the closure, 7-Eleven, based in Irving, Texas, becomes the owner of approximately 3,800 stores located in 36 states.
3) FTC commissioner calls closure of Speedway sale “illegal transaction”
The biggest acquisition of the year to date was on May 14, but it may not have had the blessing of the Federal Trade Commission (FTC). In a statement hours after the close, two commissioners said MPC and 7-Eleven’s parent company Seven & i Holdings Co. Ltd. had reached the $ 21 billion deal for Speedway LLC during the past l FTC investigation underway.
4) 7-Eleven Inks Deals to Sell 293 Stores to Three Buyers
Less than a week after the closing of the acquisition of Speedway LLC by 7-Eleven Inc. from Marathon Petroleum Corp. (MPC), the operator sells 293 stores under an agreement with the Federal Trade Commission. The buyers are Anabi Oil, Jacksons Food Stores and CrossAmerica.
5) Casey’s General Stores enters into agreement with Buchanan Energy
Casey’s General Stores Inc. recorded its largest transaction in company history. On May 14, the convenience retailer completed its acquisition of Buchanan Energy, owner of Bucky’s Convenience Stores. The deal, which the company announced in November, strengthens Casey’s presence in the Midwest, including Nebraska and Illinois, and brings the total number of convenience stores owned and operated to more than 2,300 locations.
6) Activist investor takes stake in 7-Eleven Parent, suggests restructuring
Seven & i Holdings’ latest investor could lead to changes at 7-Eleven’s parent company. San Francisco-based ValueAct Capital has taken a 4.4% stake in Tokyo-based Seven & i. ValueAct, a hedge fund, is known as an activist investor and, according to news reports, believes the sum of the parts of Seven & i is worth more than its current market value.
7) Franchisees ask 7-Eleven to reconsider 24-hour tenure
Faced with an overwhelming labor shortage, higher operating costs, lower gross margin and lower net profit, 7-Eleven franchisees asked their franchisor to reconsider its mandate that stores resume their activities 24/7 from May 24. The National Coalition of 7-Eleven Franchisees Associations (NCASEF), the umbrella organization of 41 local franchise owner associations, is calling on 7-Eleven to recalibrate the terms of their current franchise agreement to better support their owners / operators.
8) Bill to ban all sales of flavored tobacco products in Maine goes forward
The Maine Legislative Assembly’s health and social services committee introduced a bill in a May 7 virtual hearing that would ban the sale of all flavored tobacco products, including menthol cigarettes, flavored cigars and dips and electronic cigarettes.
9) Core-Mark will be acquired by Performance Food Group Co.
The Performance Food Group Co. (PFG) expands its geographic reach with the acquisition of Core-Mark Holding Co. Inc. The transaction will bring Core-Mark and Eby-Brown together under PFG’s Vistar segment. The expanded convenience store business will operate under the Core-Mark brand and be headquartered in Westlake, Texas, while Eby-Brown will continue to operate in Naperville, Illinois.
ten) Memorial Day 2021 weekend trips expected to be 60% higher than last year
More than 37 million Americans are expected to travel 80 kilometers from their homes during Memorial Day weekend (May 27-31). This is a 60% increase from 2020, when only 23 million people traveled, the lowest number on record since AAA started tracking in 2000, the association reported. .