Couche-Tard strikes deal with Giant Eagle; makes takeover offer to 7-Eleven parent
Alimentation Couche-Tard Inc. is expanding its footprint of convenience stores in the United States through an acquisition while eyeing an even bigger deal that would create a global c-store powerhouse.
The Quebec-based convenience store giant, best known for its Circle K and Couche-Tard banners, has reached a definitive agreement to acquire GetGo Café +Markets ("GetGo") from supermarket retailer Giant Eagle, Inc. GetGo, a “food-first convenience store experience,” operates approximately 270 locations across Pennsylvania, Ohio, West Virginia, Maryland and Indiana.
And in news that could reshape the convenience store industry, Couche-Tard said it had recently submitted a “friendly, non-binding” takeover proposal to Seven & i Holdings Co., Ltd., the parent company of 7-Eleven (Seven-Eleven Japan Co., Ltd.). Seven & i said its board of directors has formed a special committee composed solely of independent outside directors, led by chairperson of the board Stephen Hayes Dacus, to review the proposal.
"The company is focused on reaching a mutually agreeable transaction that benefits both companies' customers, employees, franchisees and shareholders," Couche-Tard said in a statement.
If the bid came in above Monday’s price, which values Seven & I at $38 billion, it would be the largest foreign takeover in Japan, reported MarketWatch.com.
7-Eleven International is a joint venture between 7-Eleven, Inc. and Seven-Eleven Japan, Co. Ltd., which are owned by the holding company, Seven & i Holdings Co., Ltd. Globally, the 7-Eleven trademark is represented in over 84,000 stores in 20 countries and regions.
Couche-Tard currently operates more than 16,700 stores in 31 countries and territories, with 13,100 of them offering fuel service.
Giant Eagle's GetGo
GetGo has a variety of store models, from open-concept stores to stand-alone kiosks, and features an extensive menu of made-to-order foods. As part of this transaction, Couche-Tard and Giant Eagle have agreed to maintain and partner together on Giant Eagle'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 Hannash, president and CEO of Couche-Tard who will be leaving the company next month. "We have deep respect for its management and people as well as its outstanding food and loyalty programs. We look forward to growing together as we learn from and continue GetGo's innovative approaches to serving its local customers and communities,"
The acquisition is expected to close in 2025. Financial terms of the deal were not disclosed.
[READ MORE: Couche-Tard to expand U.S. footprint with 112-store acquisition]
"We are energized by the potential for both Giant Eagle and GetGo as a result of this transaction," said Giant Eagle CEO Bill Artman. "This enhances 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. Their depth of experience in convenience stores and fuel will create tremendous opportunities for our team members and customers, and we look forward to partnering with them on the myPerks loyalty program."
