Couche-Tard Makes Two Significant M&A Moves
LAVAL, Quebec — Alimentation Couche-Tard Inc. is building up its United States presence and is eying a move on the international front.
The parent company of Circle K reached a definitive agreement to acquire GetGo Café+Markets from Pittsburgh-based Giant Eagle Inc. GetGo, the convenience store arm of the supermarket retailer, employs approximately 3,500 employees and operates approximately 270 c-stores across Pennsylvania, Ohio, West Virginia, Maryland and Indiana.
The banner has a variety of models, including open-concept stores and standalone kiosks, and features an extensive menu made-to-order foods.
"We are excited to welcome GetGo into the Couche-Tard family. 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.
"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," he added.
As part of this transaction, Couche-Tard and Giant Eagle have agreed to maintain and partner together on Giant Eagle's popular myPerks loyalty program.
"We are energized by the potential for both Giant Eagle and GetGo as a result of this transaction," added Bill Artman, CEO of Giant Eagle. "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."
The acquisition is expected to close in calendar year 2025 subject to standard regulatory approval and closing conditions. It will be financed using the company's available cash and/or existing credit facilities, including its U.S. Commercial Paper Program.
Financial terms of the transaction were not disclosed.
International Bid
On the international scene, Couche-Tard is making a play for Seven & i Holdings Co. Ltd. On Monday morning the company confirmed that it recently submitted a friendly, nonbinding proposal to the Tokyo-based parent company of 7-Eleven Inc.
The company is focused on reaching a mutually agreeable transaction that benefits both organizations' customers, employees, franchisees and shareholders. There can be no certainty at this stage that any agreement or transaction will be reached, according to Couche-Tard.
The global convenience retailer added it does not expect to issue any further public statements regarding discussions with Seven & i unless or until an agreement is reached.
Seven & i confirmed receipt of Couche-Tard's proposal to acquire all outstanding shares of the company and its board of directors has formed a special committee, comprised solely of independent outside directors, led by Stephen Hayes Dacus, as chairperson of the board, to review the proposal.
"Consistent with its obligation to act in the best interest of its shareholders and other stakeholders of the company, the special committee intends to conduct a prompt, careful and comprehensive review of the proposal, the company's standalone plans and other alternatives for enhancing corporate value, after which a response will be made to [Couche-Tard]," Seven & i said in a statement. "Neither the board of directors nor the special committee has made any determination at this time to either accept or reject the proposal from [Couche-Tard], to enter into discussions with [Couche-Tard] or to pursue any alternative transaction."
Laval-based Couche-Tard is a global leader in convenience and mobility, operating in 31 countries and territories, with more than 16,700 stores, of which approximately 13,100 offer road transportation fuel. With its well-known Couche-Tard and Circle K banners, it is one of the largest independent convenience store operators in the U.S. and it is a leader in the convenience store industry and road transportation fuel retail in Canada, Scandinavia, the Baltics, Belgium, as well as in Ireland.
It also has an important presence in Luxembourg, Germany, the Netherlands, Poland, as well as in Hong Kong Special Administrative Region of People's Republic of China. Approximately 149,000 people are employed throughout its network.
Alimentation Couche-Tard is the No. 2 retailer on the 2024 Convenience Store News Top 100 report. 7-Eleven Inc. is No. 1.