Mexico-based retail and beverage company, FEMSA will bring its chain of OXXO convenience stores across the border following a $385 million deal with Tennessee-based gas station chain Delek.
FEMSA announced their acquisition of 249 DK convenience stores in an Aug. 1 press release. The cash-free, debt-free purchase includes a small fuel transportation fleet as well as inventory.
Roughly 90% of Delek's DK branded convenience stores, are located in Texas, with two locations in Fredericksburg and others in the northern Hill Country. The remaining stores are primarily located in New Mexico, with a few locations in Arkansas.
"Importantly, [this deal] allows us to gain a competitive partner for ongoing and expanded retail fuel sales," Delek CEO Avigal Soreq stated a statement. "We look forward to building on this partnership with FEMSA in both the short and long term."
FEMSA, short for Fomento Económico Mexicano S.A.B. de C.V., currently operates more than 30,000 locations of its OXXO branded fuel and retail chain in 11 countries. This will be the first time OXXO has entered the United States in its 45 years of operation.
"At FEMSA, we have a long-held ambition to enter the US convenience and mobility industry, and this transaction represents the ideal way for us to take our first step in this compelling market," José Antonio Fernández Garza-Lagüera, CEO of FEMSA retail operations, said in a statement.
The deal is expected to close some time this year.
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FEMSA announced their acquisition of 249 DK convenience stores in an Aug. 1 press release. The cash-free, debt-free purchase includes a small fuel transportation fleet as well as inventory.
Roughly 90% of Delek's DK branded convenience stores, are located in Texas, with two locations in Fredericksburg and others in the northern Hill Country. The remaining stores are primarily located in New Mexico, with a few locations in Arkansas.
"Importantly, [this deal] allows us to gain a competitive partner for ongoing and expanded retail fuel sales," Delek CEO Avigal Soreq stated a statement. "We look forward to building on this partnership with FEMSA in both the short and long term."
FEMSA, short for Fomento Económico Mexicano S.A.B. de C.V., currently operates more than 30,000 locations of its OXXO branded fuel and retail chain in 11 countries. This will be the first time OXXO has entered the United States in its 45 years of operation.
"At FEMSA, we have a long-held ambition to enter the US convenience and mobility industry, and this transaction represents the ideal way for us to take our first step in this compelling market," José Antonio Fernández Garza-Lagüera, CEO of FEMSA retail operations, said in a statement.
The deal is expected to close some time this year.
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