It's official: Marathon Petroleum's subsidiary, Speedway, is acquiring Hess's retail locations, in a deal announced yesterday. The acquisition would expand Speedway's footprint from nine states to a whopping 23 states, and leave it with 2,733 company-owned stories, putting Speedway near the top of the largest gas station chains in the country.
"This acquisition will be transformative for MPC and Speedway as it will significantly expand our retail presence from nine to 23 states through these premier Hess locations throughout the East Coast and Southeast," said MPC president and CEO Gary Heminger.
While the move isn't a shock, the timing was surprising. Back in 2013, Heminger said Hess had "one of the best-looking systems on the East Coast," during a conference call. "It would be an excellent fit with Speedway." And he made it so.
Before the acquisition, Hess was the largest operator of c-stores along the East Coast, and the fifth largest overall in the U.S. by number of stores, with 1,256 in 16 states. Speedway, on the other hand, is the nation's fourth largest with 1,480 stores in nine states.
Tony Kenney, president of Speedway, said that it will make the retailer the largest company-owned and -operated convenience store chain in the country based upon revenue and the second largest by store count.
Many GasBuddy users voiced that they aren't familar with the Speedway name, but by 2017, many more surely will be, as Speedway expects to completely convert the green and white logo to their red and white logo by 2018.
The store expansion plan will surely have other benefits for current Speedway customers, as Speedway will likely expand its "Speedy Rewards" loyalty program to cover the new stores after it converts them.