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boomers are retiring every day and that includes some c-store owners. Operators contemplating retirement are taking the opportunity to get out sooner rather than later, noted Terry Monroe of American Business Brokers & Advisors, based in Effingham, Ill. “They are now seeing they can get more money for their chains than they ever thought possible,” he said. Sellers are getting offers higher than they have seen in years, particularly as large private equity firms are acquiring more c-store industry assets than in the past. One example is Fortress Investment Group Inc., which owned United Oil Co. and purchased Pacific Convenience & Fuels in June of last year to form the new United Pacific. “Right now, money is cheap, and it will never get this cheap again,” Monroe explained. “We are getting a lot of calls from real estate equity companies and
All figures are as of Jan. 1 for both years, unless otherwise noted.
1.
Alimentation Couche-Tard Inc. Tempe, Ariz. (U.S. headquarters) 2016 store count: 5,338 2015 store count: 3,828 Increase: 1,510 (39.4%) About the company’s growth: Alimentation CoucheTard added roughly 1,500 stores to its U.S. footprint when it closed on the acquisition of The Pantry Inc., parent of Kangaroo Express, in March 2015. This deal grew the Circle K operator’s presence in 13 Southeast states. Couche-Tard also added more than a dozen convenience stores in Indiana and Kentucky when its Mac’s Convenience Stores LLC unit purchased Fast Max Convenience Stores.
2.
Marathon Petroleum Corp. Findlay, Ohio 2016 store count: 4,312 2015 store count: 3,987 Increase: 325 (8.2%) About the company’s growth: Speedway LLC, a Marathon Petroleum subsidiary, owns and operates approximately 2,760 c-stores in 22 states. Additionally, Marathon-brand gasoline is sold through approximately
32 Convenience Store News | MARCH 2016 | WWW.CSNEWS.COM
financial buyers that want to invest in a cash business that is still growing and can give great returns. The c-store business fits that [criteria].” The BuyerS
These days, the headline on the buyer side would read: The Big Are Getting Bigger. The majority of buyers scooping up small and mid-sized chains are the largest convenience store chains and private equity firms. These groups have the cash to spend and are outbidding midsized chains as a result. “Major industry players are going into new markets and expanding rapidly, and someone with only 50 stores can’t afford to pay what they can,” said Ruben. “A mid-size chain can’t just write a check, compared to big chains who are able to bid a lot of money and
5,600 independently owned retail outlets across 19 states. Speedway’s 2014 acquisition of Hess Corp.’s retail operations has continued to be transformational, expanding its retail presence throughout the East Coast and Southeast and thus providing a significant growth platform for Speedway. Its nearly $400-million capital budget for 2016 is focused on store remodels, particularly remodels of its recently converted Hess stores along the East Coast, and building new locations in the chain’s core markets.
3.
7-Eleven Inc. Dallas 2016 store count: 8,331 2015 store count: 8,129 Increase: 202 (2.5%) About the company’s growth: Two big acquisitions contributed to 7-Eleven’s footprint explosion in the past year. In August, the nation’s largest c-store chain closed on its purchase of Tedeschi Food Shops Inc., adding 180 stores to its existing portfolio of 7-Eleven convenience stores in the greater Boston and southern New Hampshire regions. Then in November, 7-Eleven, through its wholly owned subsidiary SEI Fuel Services Inc., bought 101 Florida gasoline station locations from Biscayne Petroleum LLC and Everglades Petroleum LLC.