Alon USA said it plans to acquire Southwest Convenience Stores, LLC and its 174 licensed 7-Eleven convenience stores in West Texas and New Mexico for an undisclosed sum. The deal is expected to close next month.
Alon USA was formed when Alon Israel Oil Company Ltd. purchased FINA Oil and Chemical Co. fuels marketing and refining assets in August, 2000. In this purchase, Alon USA acquired FINA's 34.4 percent interest in SCS. SCS is the largest 7-Eleven licensee in the United States, with stores located in the Texas cities of Wichita Falls, Big Spring, Midland, Odessa, and El Paso, as well as in Albuquerque, New Mexico.
Permian Basin Investments, Inc., owned by Don and Jack Wood of Odessa, Texas, formed SCS in 1993 with the purchase of 152 stores in West Texas and New Mexico from the Southland Corp., now known as 7-Eleven Inc. In 1996 FINA acquired a 34.4 percent interest in SCS and then transferred that interest to Alon USA, which is now
acquiring the remaining interest from Permian Basin Investments
"We are very pleased with this acquisition, which will be the beginning of a new phase of growth for SCS," said Jeff Morris, president and CEO of ALON USA.
David Wiessman, Chairman of Alon USA, added: "The acquisition of SCS is one more step in the implementation of the Alon USA strategy to acquire more refineries, pipelines, and to expand our activities in the marketing and distribution of our products and related services."
Alon USA's acquired marketing network includes approximately 1,600 FINA branded units owned and operated by FINA distributors. Alon USA is headquartered in Dallas, Texas.
