Convenience Store News

DEC 2016

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14 Convenience Store News | DECEMBER 2016 | WWW.CSNEWS.COM INDUSTRY ROUNDUP T esoro Corp. and Western Refining Inc. finalized a definitive agreement for Tesoro to acquire Western Refining for $4.1 billion. The transaction was unani- mously approved by the boards of directors for both companies. Once completed, the acquisi- tion will give Tesoro refineries in Texas, New Mexico and Minnesota, in addition to its existing refineries in California, Washington, Alaska, Utah and North Dakota. The combined company will have a refining capacity of more than 1.1 mil- lion barrels per day, and create a leading multi-brand market- ing and convenience store portfolio in growing geographies with more than 3,000 combined branded retail sites. The total deal is valued at $6.4 billion and includes the assumption of approxi - mately $1.7 billion of Western Refining's net debt and the $605-million market value of the company's non-controlling interest in Western Refining Logistics LP. "The acquisition of Western further strengthens our integrated business model and extends our portfolio into attractive and growing markets," said Greg Goff, chairman and CEO of Tesoro. "As a leading integrated refining, marketing and logistics company, this transformative acquisition drives value through a combination of access to advantaged crude oil; a strong, multi-brand marketing and convenience store portfolio; and a robust platform for logistics growth, all of which will allow us to continue to create sharehold- er value." Tesoro's increased scale and diversity will enable the com- pany to leverage and enhance in-house technical capabilities, which it expects to result in cost efficiencies, the ability to drive more growth, and increased productivity, Goff added. "This strategic combination provides our shareholders with the opportu- nity to participate in the tremendous future growth prospects and synergies of the combined company," added Paul Foster, executive chairman of Western Refining. "Joining forces with Tesoro, a company that shares our integrated business model strategy, will enable us to further leverage our capabilities in refining, marketing and logistics operations, and allow our talented team to work on a growing number of exciting opportunities," Foster continued. "We have tremendous respect for the Tesoro team and are excited to be a part of a larger and more diverse organization to support our continued growth." Tesoro's Portfolio to Top 3,000 Retail Sites Signs a $4.1-billion acquisition agreement with Western Refining Only 40 percent of convenience store chains are currently EMV compliant at the point-of-sale. How- ever, the remaining 60 percent said they have at least begun the compliance process. Source: Convenience Store News 2016 Tech- nology Study (page 58) "I work every day to try to create opportuni- ties for success for our people. It is a great reason to get out of bed in the morning, and I have my dad to thank for helping me find that purpose." — Chet Cadiuex, QuikTrip Corp. (page 26) FAST FACT QUOTABLES

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