Sunoco LP said Thursday it agreed to sell 204 convenience stores in West Texas, New Mexico and Oklahoma to 7-Eleven Inc. for about $1 billion.
The deal includes Stripes convenience stores and Laredo Taco Company restaurants.
Sunoco’s stock SUN rose by 1.6% in premarket trading. 7-Eleven does not have publicly traded stock.
7-Eleven said the transaction will add all remaining Stripes and Laredo Taco Company locations that it doesn’t already own from a 2018 deal.
The stores will join its network of 13,000 Speedway and Stripes convenience stores in the U.S. and Canada.
7-Eleven Chief Executive Joe DePinto said the Stripes and Laredo Taco locations “have been a great addition to our family of brands.”
Sunoco said it’ll use proceeds from the sale to reduce debt and “execute on future growth opportunities.”
Sunoco also said it’s paying an undisclosed sum for liquid fuel terminals in Amsterdam and Bantry Bay, Ireland from Zenith Energy
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Sunoco said the “tuck-in acquisition” will add to unitholder distributions in the first year of ownership and will be funded by its revolving credit facility. The deal is expected to close in the first quarter of 2024.
Sunoco also said it continues to expect 2024 adjusted earnings before interest, taxes, amortization and depreciation of $975 million to $1 billion.
