© 2017 The Texas Lawbook.
By Natalie Posgate
(April 6) – 7-Eleven Slurpee lovers likely rejoiced this morning after learning the Irving company will purchase most of Sunoco’s convenience stores for $3.3 billion.
The deal, which will bring the frozen drink to more locations in 18 states primarily along the East Coast and Texas, launches an effort by Sunoco to divest a bulk of its convenience stores so the Dallas-based master limited partnership can focus on its fuel supply business. Sunoco will sell 200 more of its stores in North and West Texas, New Mexico and Oklahoma in a separate process.
7-Eleven turned to Dallas Akin Gump partner Thomas Yang to handle its end of the deal. Dallas partner Matt Zmigrosky was also involved. Last year, Yang advised the convenience store giant when it purchased 20 Tampa, Fla.-area gas stations and stores from sellers affiliated with The Radiant Group.
In-house 7-Eleven lawyer Dawud Crooms also played a significant role in the deal.
For Sunoco’s end of the negotiations, the company hired Lande Spottswood from Vinson & Elkins, a newly-minted partner from Houston who in November led Sunoco’s $20 billion purchase of Energy Transfer Partners.
Spottswood received assistance from a group of Houston and Dallas V&E lawyers, including corporate partners Matt Strock and Ted Stockbridge; corporate associates Brittany Sakowitz and Yong Eoh; tax associates Brian Russell and Lauren Meyers; environmental counsel Larry Pechacek and associate Matt Dobbins; real estate partner Randy Jurgensmeyer and associate Courtney Hammond; labor & employment partner Tom Wilson and Steve Williamson; executive compensation/benefits partner Brian Bloom; and intellectual property partner Devika Kornbacher. V&E’s Washington, D.C. office also advised on tax matters.
For financial advice, 7-Eleven turned to Bank of America Merrill Lynch and Sunoco turned to J.P. Morgan.
(Disclosure: As a resident of one of the 18 states, my former college kid-self is most excited about the extra abundance of taquitos this deal will hopefully bring – namely, the ‘Taquito de Taco Queso’ that I’d buy many late Saturday nights at the 7-Eleven down the street from Southern Methodist University. So naturally, I’m not mad that this deal means 7-Eleven will also have the trademark and intellectual property rights to Stripes and the Laredo Taco Company. Tacos/taquitos for all!)
The transaction is expected to close by the fourth quarter of 2017.
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