Monday, August 20, 2012
7-Eleven Seals Deal for 74 Prima Marketing Stores
Source: Convenience Store NewsBy Melissa Kress
DALLAS -- 7-Eleven Inc. has closed a deal to acquire 74 operating convenience stores and two land parcels from Prima Marketing LLC, a 7-Eleven licensee with stores in West Virginia, Ohio, Pennsylvania and Kentucky. The bulk of the stores being purchased are in West Virginia. Terms of the deal were not disclosed.
"This acquisition fits well with our accelerated growth strategy and gives us an opportunity to expand in the West Virginia market, building on our already strong Mid-Atlantic presence," said Stan Reynolds, 7-Eleven's executive vice president and chief financial officer. "Eventually, it will also provide business opportunities to local entrepreneurs who would like to operate a 7-Eleven franchise."
The acquisition includes all of Prima's company-operated stores, and employment offers were made to approximately 700 store personnel and district managers, pending completion of pre-employment screenings and continued satisfactory performance. Additionally, 7-Eleven plans to extend job offers to some non-store personnel.
"Prima has been a longstanding 7-Eleven licensee and worked very diligently to build the 7-Eleven brand within our core markets," said Prima CEO Jeffrey Kramer. "We're very proud to be able to turn the stewardship of these locations over to the capable hands of 7-Eleven for that company's continued growth."
The purchase of these stores adds to 7-Eleven's goal of opening at least 630 new locations in 2012. Currently, 7-Eleven operates and franchises 21 stores in West Virginia, 172 in Pennsylvania and 10 in Ohio. NRC Realty & Capital Advisors LLC served as advisor to Prima Marketing.
7-Eleven will add its proprietary retail information system and technology for enhanced product-ordering capabilities and continue to offer 7-Eleven's private brands and well-known proprietary products such as 7-Eleven's proprietary coffee, Slurpee and Big Gulp drinks, plus grill products along with standard convenience store items.