7-Eleven acquires Mobil service stations
7-Eleven Australia has agreed to acquire the retail fuels business of Mobil Oil Australia, comprising 295 company owned or leased service stations.
The addition of the outlets will substantially strengthen 7-Eleven’s presence, particularly in metropolitan areas of eastern Australia, bringing the total number of outlets to more than 650 and increasing customer transactions to an estimated 160 million per year and projected sales of over $2.84 billion.
“As a family-owned business that has been operating 7-Eleven in Australia for 33 years, we are very excited about this acquisition and welcome the Mobil metropolitan retail fuels business and its employees into our group,” said Chairman of 7-Eleven Australia Russell Withers.
“The acquisition combines two successful companies with high-calibre workforces to make a stronger organisation focused on growth, our customers and our employees.”
The acquisition is expected to take 7-Eleven to third place for Australia’s largest private company.
7-Eleven Chief Executive Officer, Warren Wilmot, said, “This is not simply complementary to our business, it is our business. Similar acquisitions in the past have delivered significant per-store merchandise sales growth, demonstrating the strength of the brand’s consumer appeal. In addition, the acquired sites are well-positioned with strong fuel and food store volume, bringing excellent synergies with 7-Eleven’s current operations.”
The transfer of Mobil stores to the 7-eleven brand should come in the next year and a half, with no operational changes expected for employees in the short term.
“We expect to convert most of the Mobil sites into 7-Eleven stores by the end of 2011, with sites being significantly upgraded. This is also great news for our existing franchisees, as it will bring supply chain efficiencies and greater buying and marketing power for 7-Eleven,” said Wilmot.
“In the short term, very little will change for employees, as we recognise that both companies have significant employee talent we wish to harness.”