Short answer: Does 7-Eleven own Speedway?
Yes, 7-Eleven purchased Speedway in August 2020 for $21 billion, making it the largest acquisition in the company’s history. The acquisition adds over 3,900 stores to 7-Eleven’s portfolio, making it the world’s largest convenience store chain.
How Did 7 11 Acquire Speedway? A Closer Look
The recent acquisition of Speedway by 7-Eleven has caused quite a stir in the convenience store industry. The deal, which was announced in August 2020, is worth a whopping $21 billion dollars and allows 7-Eleven to expand its footprint even further across the United States.
But how exactly did this acquisition come about? And what does it mean for both companies?
To understand the origins of this deal, we have to go back a few years. In 2014, Marathon Petroleum Corp took over Hess Corporation’s retail business. This meant that Marathon acquired all Hess gas stations and convenience stores, including the popular chain “Speedway.”
Flash forward to 2020 and Marathon began exploring options to shed some assets and focus on their core oil refining business. One of those assets just happened to be Speedway.
Enter 7-Eleven, who was looking to expand their reach in the US market – especially with the rise of online shopping competing for customers’ attention. They saw an opportunity with Speedway’s extensive network of stores (over 3,900) in 36 states across America – making them one of the largest chains in the country.
So why would Marathon sell off such a profitable arm of their business? For one thing, they were already struggling financially due to a slump in oil prices from earlier this year – prompting them to cut spending on operational costs so they could repay debt.
But more importantly – they wanted assurance that their asset would be handled by someone they trusted. And who better than one of the most well-known brands in convenience stores?
With years-long relationships together as suppliers and partners already set up between Speedway and 7-Eleven – as well as being part of international giant **”Seven & I Holdings Co.”** who boasts more than **70k** locations worldwide- it was an obvious win-win situation for both parties involved.
However, not everyone is thrilled about the acquisition. Some industry experts argue that the deal may create a monopoly in the convenience store market – which could drive prices up for consumers.
But with 7-Eleven’s long-standing position and popularity, it seems unlikely that this would cause any significant problems. If anything, they may be able to streamline Speedway even further – adding more efficiency in their supply chains and ensuring better delivery times for goods.
It’s also important to note that both companies are taking pains to ensure a seamless transition for employees. 7-Eleven CEO Joe DePinto has made statements about offering positions to many of Speedway’s staff – thereby preventing them from losing their jobs due to this acquisition.
All in all, it looks like Marathon will walk away as one of the biggest winners here – freeing up cash during a time when oil refining isn’t doing particularly well. And with 7-Eleven acquiring such an extensive network of stores across America, they’re sure to strengthen their foothold in what looks set to be an increasingly competitive retail environment.
Does 7 11 Own Speedway? Your Step-by-Step Guide to Understanding the Acquisition
As one strolls down the streets of any major city, they are likely to come across at least one 7-Eleven convenience store. The well-known brand has been around for over 90 years and is a staple in many communities. Recently, however, there have been rumors flying about whether or not 7-Eleven owns another popular convenience store chain – Speedway. So, does 7-Eleven really own Speedway? Let’s take a step-by-step guide to understanding the acquisition.
Step One: Knowing the Players
To understand the acquisition, we need to know who exactly is involved. Both 7-Eleven and Speedway are large convenience store chains that operate throughout the United States.
7-Eleven boasts over 71,000 stores worldwide and is known for its wide variety of snacks and beverages available on-the-go. Meanwhile, Speedway operates nearly 4,000 locations throughout the U.S., primarily located in Midwest states like Ohio and Pennsylvania.
Now that we know who we’re dealing with let’s move on to…
Step Two: The Acquisition Itself
On August 2nd, 2020 it was officially announced that Seven & I Holdings (the parent company of 7-Eleven) had acquired Speedway from Marathon Petroleum Corp for $21 billion dollars. This transaction made Seven & I Holdings one of the largest retailers in the world with over $130 billion dollars in revenue.
But why did Seven & I Holdings purchase another convenience chain when they already have so many stores?
Step Three: Strategic Business Moves
Seven & I Holdings saw acquiring Speedway as a strategic business move that would help solidify their position as a leading retailer in North America – particularly in areas where they may not have had a strong presence before (like Midwest states).
In addition to expanding their footprint, this acquisition also allows Seven & I Holdings to leverage some of Speedway’s strengths – such as their Speedy Rewards loyalty program, and their innovative technology like mobile payments and contactless checkout.
Step Four: What This Means for Consumers
As a consumer, what can you expect from this acquisition? Initially, not much will change in terms of store branding. Speedway stores will still operate under their own name – with the addition of “An Officially Licensed Brand of 7-Eleven” underneath.
Over time, however, consumers may start to see new programs or technologies pop-up at Speedway stores that were previously only available at 7-Eleven locations. Additionally, there may be changes in pricing or product offerings as the two chains work to consolidate supply chains and streamline operations.
Overall, the acquisition of Speedway by Seven & I Holdings (and subsequently 7-Eleven) is an exciting development for both companies and their consumers alike. As the convenience store industry continues to evolve – with more focus on speed and convenience – it’s likely that we’ll see additional strategic acquisitions like this in the future!
Answers to Your FAQS: Does 7 11 Really Own Speedway?
You may have heard the rumors floating around that 7-Eleven has acquired Speedway, but is it really true? The short answer is yes! Let’s dive deeper into this topic and answer some frequently asked questions about this latest convenience store acquisition.
Q: When did 7-Eleven acquire Speedway?
A: The agreement for the acquisition was announced on August 2nd, 2020 and was completed on May 14th, 2021.
Q: How much did 7-Eleven pay for Speedway?
A: The purchase price was $21 billion in cash and stock.
Q: Why did 7-Eleven acquire Speedway?
A: With the acquisition of Speedway, 7-Eleven has become the largest convenience retailer in the United States. This move allows for increased market presence and greater economies of scale, potentially leading to better prices for consumers.
Q: Will all Speedway stores become 7-Eleven stores?
A: Yes. All current Speedway locations will eventually be rebranded as 7-Eleven stores.
Q: Will anything change at current Speedway locations during the transition process?
A: For now, no immediate changes are planned. However, over time customers can expect to see changes such as an expanded product line and loyalty program options similar to those offered by traditional 7-Eleven stores.
Q: What does the acquisition mean for employees of both companies?
A: During the transition process, it is expected there will be minimal disruption in terms of employee roles and responsibilities. As always with mergers and acquisitions though – only time will tell exactly how everything pans out long term!
In summary, it’s official that one of America’s biggest convenience store chains is no longer operating under its original name. So next time you’re grabbing a snack or drink from a blue-and-yellow sign wrapped store window in your neighborhood – remember that whether you call it “Speedway” or “7-Eleven”, the convenience is here to stay.
