FINDLAY, Ohio — Marathon Petroleum agreed to sell the entirety of its Enon-based Speedway division to the parent company of 7-Eleven in a transaction worth $21 billion, Marathon officials announced Sunday.
The deal also establishes a relationship between the two companies Marathon will provide 7.7 billion gallons of fuel per year to 7-Eleven for the next 15 years, with additional growth possible.
“Our announcement crystalizes the significant value of the Speedway business, creates certainty around value realization and delivers on our commitment to unlock the value of our assets,” Michael J. Hennigan, president and chief executive officer of the Findlay, Ohio based Marathon said in the media release. “At the same time, the establishment of a long-term strategic relationship with 7-Eleven creates opportunities to improve our commercial performance.”
Marathon officials said the transaction was approved unanimously by the boards of directors of both companies and the transaction is expected to close in the first quarter of 2021, pending regulatory approvals.
Marathon officials added that $16.5 billion of the all-cash transaction will go directly to “strengthen balance sheet and return capital to shareholders.”
7-Eleven’s purchase will add 3,900 Speedway stores, bringing their total number of stores in the U.S. and Canada to a dominant 14,000, according to a report from Bloomberg. The purchase by the Japanese-based 7-Eleven was made to keep its chief competitor, Canadian-based Alimentation Couche-Tard Inc., from buying Speedway and gives 7-Eleven a presence in 47 of the top 50 metropolitan markets in the U.S., Bloomberg reports.
Alimentation Couche-Tard Inc. owns multiple convenience store brands worldwide, with Circle-K being the most recognizable outlet in the U.S.
A Dayton Development Coalition spokesperson said the economic agency looks forward to welcoming 7-Eleven to the region.
“Speedway is a trusted corporate citizen with a long-standing commitment to the region,” Jeff Hoagland, President and CEO of the DDC said in an emailed statement. “As the proposed acquisition of Speedway by 7-Eleven Inc. moves forward, we look forward to welcoming 7-Eleven into the Dayton Region and supporting their continued growth.”
Additional information about what the acquisition means for Speedway’s Enon headquarters and potential re-branding, were not immediately known. News Center 7 has reached out to a Marathon spokesperson and is awaiting a response.
We’ll continue to update this story as new details become available.