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A TEXAS-based gas station and convenience store brand has been sold to a Mexican company as it plans to cross the border and expand its locations.
DK convenience stores have been bought by Fomento Económico Mexicano, or FEMSA, a retail company based in Monterrey, Mexico.
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Tennessee-based oil refiner Delek US Holdings will receive $385 million in cash for 249 DK stores, per Fox affiliate KFOX.
Most of the DK stores are located in Texas and New Mexico.
Its rival, Buc-ee’s has 37 out of 50 locations in Texas.
The deal was announced on August 1 and is expected to close by the end of the year.
READ MOR on Store Closures
President and CEO of Delek, Avigal Soreq, said the sale was an “incremental step in our commitment to unlock the sum of the parts value inherent in our system,” per the outlet.
“We are pleased with this transaction and expect to execute on additional steps to unlock value for our stakeholders. Importantly, it allows us to gain a competitive partner for ongoing and expanded retail fuel sales.
“We look forward to building on this partnership with FEMSA in both the short and long term.
“The transaction creates an exciting opportunity for Delek US Retail and its employees as they become part of FEMSA’s growth strategy in the United States.”
Delek US Holdings also owns Alon, another well-known gas station convenience store.
‘A LONG-HELD AMBITION’
FEMSA, which owns Oxxo, a Mexico-based gas station convenience store, will be expanding to El Paso, Texas, and taking over the DK locations.
Oxxo has over 22,800 stores in 5 countries, including Mexico, Colombia, Chile, Peru and Brazil.
CEO of FEMSA’s retail operations, José Antonio Fernández Garza-Lagüera, made a statement about the purchase.
“At FEMSA, we have a long-held ambition to enter the U.S. convenience and mobility industry, and this transaction represents the ideal way for us to take our first step in this compelling market,” said Garza-Lagüera.
“We have been building and expanding our retail operation in Mexico for over 45 years, eventually reaching ten other countries in South America and Europe, and a store base of more than 30,000 locations.
History of DK gas station and convienence store
2000-2011: The first Alon-managed gas stations opened in 2000 under the name Fina. It didn’t go by Alon until the brand launched in 2011.
2027: Delek US Holdings bought Alon Brands including its store locations and refineries.
2019: The DK brand is launched by Delek. The first location opened in Midland, Texas in January 2019.
2022: Delek launched DK Elevate — an updated version of DK — starting in Abilene, Texas.
2024: DK was bought by Fomento Económico Mexicano, or FEMSA. The company plans to expand Oxxo gas station convenience stores into the US.
According to DK Fuel
“As we welcome our new DK colleagues into the FEMSA family, we are excited to embark on this new and important journey together.”
ANOTHER MAJOR DEAL
The transaction between the two gas station convenience stores isn’t the only big acquisition.
Mars recently announced that it planned to buy Kellanova, the maker of Cheez-It and Pringles.
The candy brand plans to finance the $36 billion deal through cash and new debt.
Customers were immediately worried their favorite snacks would soar in price.
“Mark my words, Pringles and Cheez-It will increase and retail cost by about another dollar and another dollar by the end of next year,” a user wrote.
“Mergers are bad for the economy And the consumer gets the worst of it”
“Get ready to pay $12 for a can of Pringles…” another said.
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