Irving-based convenience store chain 7-Eleven Inc. has agreed to purchase 204 stores from Sunoco LP that include the Stripes and Laredo Taco Company brands.
With locations in New Mexico, Oklahoma and West Texas, the 204 stores join 7-Eleven’s more than 13,000-store portfolio. The purchase is one of the latest expansions for the retailer, which bought Ohio-based Speedway, the third largest convenience chain at the time, in early 2021 for $21 billion.
The deal, which was announced Thursday and valued at a reported $950 million, is expected to close as soon as it receives regulatory approval. Sunoco plans to use funds from the sale of the stores to reduce debt and pursue future growth opportunities, according to a news release.
Akin advised 7-Eleven on the deal and was led by a Dallas team that included partners Thomas Yang and Ashton Barrineau Butcher, with help from Penelope Shumway, Hannah Bush and Megan Hamilton.
Others from Akin who assisted on the deal were partners Alison Chen (Houston), Lauren Leyden (New York), Rolf Zaiss (New York), Stephanie Bollheimer (New York), David Vondle (Washington), Corey Roush (Washington), Matthew Bivona (Dallas) and John Bain (Dallas), with help from Samir Halawi (Houston), Thomas Hillebrand (Houston), Dustin Stark (New York), Hannah Reichelscheimer (New York), Brian Rafkin (Washington), Mitchell Khader (Washington), Trevor Vega (Dallas), Chase Hudson (Dallas), Srikaran Mahavadi (Dallas), Brielle Rowe (Dallas), David Quigley (Washington), Andrew Oelz (Los Angeles) and Erin Magoffie (Washington).
Vinson & Elkins steered the transaction for Dallas-based master limited partnership Sunoco. V&E’s team was led out of Houston by partner Lande Spottswood and counsel Yong Eoh, who were assisted by Mikhaila Martin (Austin) and a Houston contingent of Kelli Westmoreland, Rivers Stephens, Shelby Shearer and Nick Priebe.
Also assisting on the deal for V&E were partners Courtney Hammond (Dallas), Sean Becker (Houston), David D’Alessandro (Houston and Dallas), Gary Huffman (Washington), Brian Russell (Dallas), Patrick Darby (Dallas), Matt Dobbins (Houston) and Sarah Mitchell (Dallas), with assistance from Joe O’Connell (Dallas), Alex Paez (Dallas), Matthew Fosheim (Dallas), Camryn McGinnis (Dallas), Travis Corbin (Dallas), Peter Goetschel (Houston), Regina Ibarra (Houston), Mary Daniel Morgan (Houston), Morgan Whittlesey (Houston), Kelly Rondinelli (Washington), Rajesh Patel (Houston), Haley Titcomb (Austin) and Victoria Bahrami (Dallas).
In a Texas Lawbook profile from 2021, former 7-Eleven senior counsel and in-house M&A lead Dawud Crooms said that the convenience store chain is discerning when it comes to transactions. 7-Eleven looks at about 50 acquisition opportunities each year but only moves forward with a select few, said Crooms, who is now general counsel for Plano-based Atlantic Aviation.
Prior to the transformative deal with Speedway that combined two of the nation’s largest convenience store chains, 7-Eleven’s last major purchase came in 2018 when it bought Sunoco’s retail business for $3.3 billion. That deal with Sunoco included 1,100 stores in 18 states, which helped jumpstart 7-Eleven’s burgeoning restaurant platform, principally Laredo Taco Company. With this latest purchase, 7-Eleven will now own all Stripes convenience stores and Laredo Taco locations in the U.S.
“Stripes and Laredo Taco Company have been a great addition to our family of brands since they initially joined us back in 2018,” said CEO Joe DePinto in a news release. “We’re excited to welcome the remaining Stripes stores and Laredo Taco Company Restaurants to the family, and we look forward to serving even more customers across West Texas, New Mexico and Oklahoma.”
Lillian Kirstein serves as 7-Eleven’s Senior Vice President, General Counsel & Secretary. Prior to joining the national chain in 2012, Kirstein was senior in-house counsel for Richardson-based Lennox International Inc.
