FEMSA Acquires Delek US Retail for US$385 Million

(Delek) to acquire its retail operations, which consist of 249 convenience stores primarily located in Texas, for a total of US$385 million. This amount, net of cash and debt, includes the acquisition of inventories.

“We are confident that this acquisition is a significant step in expanding our global footprint and retail portfolio, in line with our #FEMSAForward strategy,” said José Antonio Fernández Garza-Lagüera, Director General of Proximity and Health, FEMSA, on LinkedIn.

“We have developed our retail operations in Mexico over the past 45 years, expanding to 10 other countries in South America and Europe, and now managing over 30,000 locations. We are excited to welcome our new DK colleagues to the FEMSA family as we embark on this important new venture,” said Garza-Lagüera.

Delek, primarily an energy company focused on oil refining, will separate its retail operations for this transaction. The convenience stores, operating under the DK brand, are predominantly located in Texas, with about 90% of the stores in this state. The remaining stores are situated mainly in New Mexico, with a small presence in Arkansas. Almost all the stores also include gas stations operating under the DK and Alon fuel brands. The deal also includes a small fuel transportation fleet.

FEMSA highlighted the attractiveness of the US convenience and mobility market, which is worth over US$850 billion and includes more than 150,000 locations. “This market is highly fragmented and presents a valuable opportunity for operators with the right capabilities and scale. For FEMSA, this aligns with our strategy and provides an opportunity to build a platform that can achieve scale and create value for our shareholders,” the company stated.

“The transaction brings a competitive customer for future fuel sales. We look forward to building this relationship with FEMSA in the short and long term. The transaction offers an attractive opportunity for Delek US Retail and its employees as they become part of FEMSA’s growth strategy in the United States,” said Avigal Soreq, President and CEO, Delek.

The transaction is subject to regulatory approvals and customary conditions, with FEMSA anticipating the deal will close in the second half of 2024.