FEMSA to Acquire 249 Convenience Stores in Texas and New Mexico in $385 Million Deal
Mexican convenience store giant FEMSA has reached an agreement to acquire 249 corner food marts in Texas and New Mexico from Delek U.S. Holdings in a deal valued at $385 million. The transaction includes inventory and a small fleet for fuel transportation, according to separate announcements from the companies on Thursday.
FEMSA, headquartered in Monterrey, Mexico, operates over 30,000 Oxxo convenience stores across Mexico, Chile, Colombia, Peru, and Brazil. The company’s full name is Fomento Economico Mexicano S.A.B. de C.V.
Jose Antonio Fernández Garza-Lagüera, CEO of FEMSA Retail Operations, expressed the company’s enthusiasm for entering the U.S. market: “At FEMSA, we have long aspired to join the U.S. convenience and mobility sector, and this deal represents an ideal opportunity to make our debut in this promising market.”
Delek U.S. Holdings, based in Nashville, operates its convenience stores under the DK and Alon brands, with nearly 90 percent of its locations in Texas, and the remainder spread across New Mexico and Arkansas. The company’s assets span petroleum refining, logistics, pipelines, renewable fuels, and convenience stores. Delek plans to continue supplying the stores now being acquired by FEMSA.
Avigail Soreq, President and CEO of Delek, highlighted the benefits of the partnership: “This agreement provides us with a valuable partner for expanding retail fuel sales. We look forward to leveraging this relationship with FEMSA for both immediate and future growth. The transaction presents an exciting opportunity for Delek US Retail and its employees as they become part of FEMSA’s U.S. expansion strategy.”
FEMSA is confident that its 45 years of retail experience will facilitate a successful entry into the U.S. market. The company believes that its Oxxo brand, familiar to many Texas residents with connections to Mexico, will be advantageous in this new venture.
“FEMSA’s extensive experience in retail, including store expansion, procurement, supply chain management, segmentation, and pricing, will be crucial as we roll out our U.S. convenience strategy,” the company stated. “While our approach is broader than any single region, the appeal of the Oxxo brand may resonate in areas served by the DK stores.”
The deal is pending regulatory approval in the U.S., which is expected to be completed in the latter half of 2024.
