IPO Filing: Alon Brands, Inc., A 7-Eleven Play (ABO)

November 13, 2008 by Douglas A. McIntyre

Money_stack_picIt seems that the IPO filings may at least be seeing a very small comeback after weeks and weeks of being in a desert with no oasis.  Alon Brands, Inc. filed late yesterday to sell up to $100 million in common stock.  Alon is one of the companies tied to 7-Eleven stores in the U.S.  The joint book-running managers are listed as Credit Suisse and Merrill Lynch.

The company is the largest 7-Eleven licensee in the U.S., and is thesole licensee of the FINA brand for motor fuels in parts of Texas and New Mexico. The business consists of two operatingsegments: retail and wholesale marketing. As of June 30, 2008, itsretail segment operated 306 convenience stores in Central and WestTexas and New Mexico, substantially all of which are operated under the7-Eleven and FINA brands. Through Alon’s 7-Eleven licensing agreement,it has the exclusive right to operate 7-Eleven stores in substantiallyall of the existing retail markets and many surrounding areas. Thecompany’s wholesale marketing segment markets and supplies motor fuelsunder the FINA brand and provides brand support and payment cardprocessing services to distributors supplying over 1,000 retaillocations (including its own company-owned stores). In certain markets,the company sub-licenses the FINA brand to distributors representingapproximately 100 additional retail locations.

Alon has applied to take the proposed ticker of "ABO" on the NYSE.

JON C. OGG
NOVEMBER 13, 2008