[Update as of Sept. 6, 2024] The board of Seven and i Holdings, which operates more than 80,000 7-Eleven convenience stores, has rejected last month’s $38.5 billion takeover bid from Canada-based c-store operator Alimentation Couche-Tard, saying it “grossly undervalues” the company’s worth. In a letter from Stephen Dacus, chair of the special committee that Seven and i’s board formed after Couche-Tard’s initial offer, he wrote: “Even if you were able to improve the value element of your proposal very significantly, your proposal does not adequately acknowledge the multiple and significant challenges such a transaction would face from U.S. competition law enforcement agencies in the current regulatory environment and provides no certainty to closing.”
Original story begins from Aug. 19, 2024 begins-
Canada-based convenience store giant Alimentation Couche-Tard will continue its U.S. expansion with the acquisition of the 270-store GetGo Café + Markets chain from Giant Eagle. No financial details about the transaction, which is expected to close in 2025, were disclosed.
Additionally, in a move that would be a seismic shock in this sector, Couche-Tard has made a “friendly, non-binding proposal” to acquire Seven & i Holdings Co., the Japanese company that operates more than 80,000 7-Eleven convenience stores as well as other retail banners. In response to Couche-Tard’s proposal to buy all outstanding shares of the company, Seven & i’s board of directors has formed a special committee, comprised solely of independent outside directors, to review the proposal.
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By geography, Seven & i’s holdings are overwhelmingly concentrated in North America, which contributes approximately three-quarters of its revenue, according to Reuters. That aligns with Couche-Tard’s recent moves to beef up its store count in the U.S., including its acquisition of 112 Mapco Express convenience stores in May 2023. In March 2024, Couche-Tard also deployed a unified supply chain and planning system from Relex across its North American store footprint.
While certainly smaller than the Seven & i deal would be, the acquisition of GetGo also will contribute to Couche-Tard’s growing U.S. footprint. GetGo employs approximately 3,500 people across its 270 convenience retail and fuel locations in Pennsylvania, Ohio, West Virgina, Maryland and Indiana. The retailer operates a variety of store models, from open-concept stores to standalone kiosks, and features high-quality made-to-order foods. As part of the transaction, Couche-Tard and Giant Eagle have agreed to maintain the supermarket retailer’s myPerks loyalty program.
“As we learn more about the GetGo business, it is clear that it has built a strong and passionate customer base with high-quality stores staffed by talented and engaged teams working to deliver a great experience,” said Brian Hannasch, President and CEO of Couche-Tard in a statement. “We have deep respect for its management and people, as well as its outstanding food and loyalty programs. We look forward to growing together.”
Bill Artman, CEO of Giant Eagle added in a statement that the deal will enable that retailer to enhance “our focus on our core supermarket and pharmacy businesses, strengthening Giant Eagle and better enabling us to make strategic investments in our people, stores and value proposition while matching GetGo with the perfect partner in Couche-Tard.” said
