The nation’s largest petroleum refinery operator plans to invest heavily in its retail segment in 2020 before spinning off the Dayton-area subsidiary at the end of the year.
That’s big news for the continued growth of Speedway LLC, the Enon-based retailing arm of Marathon Petroleum Corp. . Speedway, the second-largest convenience store chain in the nation, will receive a $550 million investment this year before becoming its own publicly traded company, according to a filing with the U.S. Securities and Exchange Commission.
The move mirrors a similar approach in 2019, when Marathon invested $500 million to facilitate Speedway’s continued growth.
Marathon’s $550 million capital forecast for Speedway in 2020 will focus primarily on the continued conversion of acquired locations to Speedway’s branding and systems — a continuation of its long-term growth strategy that includes dealer sites, acquisitions, growth in new and core markets, building out commercial fueling sites to capitalize on growing diesel demand and expanding food service through store remodels.
The news comes just months after Marathon confirmed plans to spin off Speedway into a standalone enterprise. DBJ last month also reported that Seven & i Holdings Co., the Japanese owner of 7-Eleven, is reportedly in talks to buy Speedway for $22 billion.
In an annual report filed Friday, Marathon’s retail segment — comprised primarily of Speedway — posted revenues of $33.1 billion in 2018, up from $23.6 billion the year prior. Marathon attributed Speedway’s revenue spike to increased fuel and merchandise sales resulting from the $23 billion acquisition of San Antonio-based refining company Andeavor.
Source: Dayton Business Journal