7-Eleven is set to increase its store network and buying power after entering into a binding agreement with Mobil Oil Australia
May 27, 2010
7-Eleven has entered into a binding agreement with Mobil Oil Australia to acquire its retail fuels business, in a move which will see its store numbers
grow from 400 to more than 650.
The acquisition comprises 295 company-owned or leased service stations, primarily located in the metropolitan areas of eastern Australia.
Included in the acquisition are approximately 30 stores in South Australia where 7-Eleven does not currently operate.
According to a company statement released today, the combined entity will serve more than 160 million customer transactions each year.
7-Eleven Australia Chairman Russell Withers says the deal with Mobil will build on the company’s position as the leader in the convenience retailing industry in Australia.
“As a family-owned business that has been operating 7-Eleven in Australia for 33 years, we are very excited about this acquisition and welcome the Mobil metropolitan retail fuels business and its employees into our group,” Withers says.
“The acquisition combines two successful companies with high-calibre workforces to make a stronger organisation focused on growth, our customers and our employees,” he says.
GREATER BUYING POWER
Chief Executive Officer Warren Wilmot assures the takeover is much more than a complimentary add-on to the 7-eleven business.
“Similar acquisitions in the past have delivered significant per-store merchandise sales growth, demonstrating the strength of the brand’s consumer appeal,” Wilmot says.
“In addition, the acquired sites are well-positioned with strong fuel and food store volume, bringing excellent synergies with 7-Eleven’s current operations,” he says.
According to Wilmot, most of the Mobil sites will be converted into 7-Eleven stores by the end of 2011, with sites also being significantly upgraded.
“This is also great news for our existing franchisees as it will bring supply chain efficiencies and greater buying and marketing power for 7-Eleven,” he adds.
It is 7-Eleven’s intention the stores and assets will be transferred to the Peregrine Corporation, a family-owned business which has been operating in Australia for 26 years.
With 38,000 stores globally, 7-Eleven is the world’s largest retail store brand.