A Texas-based gas station and convenience store brand has been sold to a Mexican company as it plans to expand across the border and expand its locations.
The DK convenience stores were purchased by Fomento Económico Mexicano (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, according to Fox affiliate KFOX.
Most DK stores are located in Texas and New Mexico.
Its rival Buc-ee’s has 37 of 50 stores in Texas.
The deal was announced on August 1 and is expected to close by the end of the year.
READ MORE about store closures
Avigal Soreq, Delek’s president and CEO, said the sale was a “gradual step in our effort to unlock the full value of the parts inherent in our system,” according to the outlet.
“We are pleased with this transaction and expect to take further steps to increase value for our shareholders. Importantly, this will enable us to gain a competitive partner for ongoing and expanded retail fuel sales.
“We look forward to expanding this partnership with FEMSA both in the short and long term.
“The transaction represents 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, owner of Oxxo, a gas station convenience store based in Mexico, will expand to El Paso, Texas, and take over the DK locations.
Oxxo has over 22,800 stores in 5 countries, including Mexico, Colombia, Chile, Peru and Brazil.
The CEO of FEMSA’s retail business, José Antonio Fernández Garza-Lagüera, made a statement about the purchase.
“At FEMSA, we have long had the ambition to enter the US convenience and mobility industry, and this transaction represents the ideal opportunity for us to take our first step into this attractive market,” said Garza-Lagüera.
“We have built and expanded our retail business in Mexico for over 45 years and have now reached ten other countries in South America and Europe, with a store base of more than 30,000 locations.
History of the DK petrol station and convenience store
2000-2011: The first petrol stations managed by Alon were opened in 2000 under the name Fina. It was only with the launch of the brand in 2011 that it became known under the name Alon.
2027: Delek US Holdings buys Alon Brands, including its stores and refineries.
2019: The DK brand is launched by Delek. The first location opened in Midland, Texas in January 2019.
2022: Delek launches DK Elevate – an updated version of DK – and launches in Abilene, Texas.
2024: DK was purchased by Fomento Económico Mexicano (FEMSA). The company plans to expand Oxxo’s gas station convenience stores in the United States.
According to DK Fuel
“We welcome our new DK colleagues to the FEMSA family and look forward to embarking on this new and important journey together.”
ANOTHER BIG DEAL
The transaction between the two gas station convenience stores is not the only major takeover.
Mars recently announced plans to acquire Kellanova, the maker of Cheez-It and Pringles.
The candy brand plans to finance the $36 billion deal with cash and new debt.
Customers immediately feared that prices for their favorite snacks would skyrocket.
“Mark my words, Pringles and Cheez-It will increase their retail price by about another dollar and then another dollar by the end of next year,” one user wrote.
“Mergers are bad for the economy. And the consumer is the worst”
“Be prepared to pay $12 for a can of Pringles…” said another.
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