7-Eleven parent to acquire IndyCar fuel supplier Speedway for $21B

No word on whether the sale will eventually impact their fuel supply deal with IndyCar that was signed in 2018

Petroleum refinery operator Marathon Petroleum Corp. (NYSE:MPC) has agreed to sell IndyCar official fuel supplier Speedway, its Enon-based retailing arm, to the corporate owner of international convenience store chain 7-Eleven for $21 billion.

Seven & i Holdings Co., the Tokyo-based parent of 7-Eleven Inc., will add more than 3,900 Speedway stores in 35 states to its U.S. footprint as part of the all-cash transaction, the company said in a statement Sunday.

Marathon said the agreement should generate about $16.5 million in after-tax cash proceeds that will be used to reduce the company's debt and return capital to shareholders. The arrangement also includes a 15-year fuel supply agreement for approximately 7.7 billion gallons per year associated with the Speedway business.

The deal, approved unanimously by the boards of directors of both companies, is expected to close in the first quarter of 2021.

Speedway is the largest company in the Dayton region, posting more than $33 billion in revenue last year.

"This transaction marks a milestone on the strategic priorities we outlined earlier this year," Michael Hennigan, president and CEO of Marathon, said in a statement. "Our announcement crystallizes the significant value of the Speedway business, creates certainty around value realization and delivers on our commitment to unlock the value of our assets."