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PLEASANTON, Calif. -- About four months after putting together a list of non-core assets it was looking to divest, Pacific Convenience & Fuels LLC (PC&F) has signed a deal to sell 28 of those sites. But it's not all about selling. The locally headquartered retailer is also set to close on four new properties by the end of the year.
In a deal announced late yesterday, 7-Eleven Inc. is acquiring the retail interests of 28 PC&F properties in California, Oregon, Washington and Colorado. The locations are just one group of sites the company has marked as non-core, Chris Wilson, PC&F's general manager, told CSNews Online in an interview today.
The deal, which is slated to close in the fourth quarter, also includes two vacant pieces of land. All of the locations will eventually carry the 7-Eleven flag and retain the Conoco-Phillips/76 gasoline brands. The Dallas-based 7-Eleven chain will start remodeling and rebranding the locations after the deal closes, with the bulk of the work anticipated to be completed by the end of 2012. Approximately 15 stores will require only interior and imaging changes, which should be completed by the end of this year, while the balance will undergo more extensive remodeling. All of the stores will be available for franchise.
"This is a strategic acquisition for us, increasing our store footprint in several of our most successful markets," said Sean Duffy, 7-Eleven's vice president of mergers and acquisitions. "Year to date, 7-Eleven has added more than 400 new locations, and 2011 promises to be 7-Eleven's biggest year for store growth since 1986."
PC&F still has more sites to divest. All told, there are 94 stores and/or vacant sites that no longer fit into PC&F's overall strategy and are on its divest list. No other sell-offs are currently pending, Wilson said.
However, what is pending is a deal for PC&F to acquire four new sites in California. The company expects to close that deal within 45 days, Wilson told CSNews Online.
He could not disclose the price of the 7-Eleven deal and would not say if the company has hung a price tag on the remaining assets. "It is not really about how much money we raise, but a matter of positioning our company to grow down the road," he explained, adding that PC&F is always revaluating its sites and those that don't make sense are placed on the divest list. "It is a continual process."
So far this year, he added, PC&F has added six stores to its portfolio: two through ground-up construction and four through acquisitions.