Casey’s rebuffs 7-Eleven, announces 44-store acquisition
Ankeny, Iowa Casey’s General Stores said Wednesday it has ended its discussions with 7-Eleven regarding a potential sale.
Casey’s said it received a revised acquisition proposal from 7-Eleven of $43.00 per common share in cash, but Casey’s board voted unanimously to reject the offer, saying the revised proposal “does not reflect the value of Casey’s and its significant growth opportunities, and is not in the best interests of Casey’s, its shareholders, and other constituencies,” according to a statement.
“Given that Casey’s and 7-Eleven have been unable to reach mutually agreeable terms, the companies are no longer in discussions,” Casey’s said in a statement.
In other Casey's news, the c-store retailer also said Wednesday that it has signed an asset purchase agreement to acquire up to 44 Kabredlo’s locations.
The 44 convenience stores include 22 in Nebraska, 21 in Kansas and one in Oklahoma. All of the locations acquired will be converted to Casey's General Stores, according to the company.
“The acquisition of the Kabredlo’s locations is an excellent fit to our existing store base and will add to our presence in Nebraska and Kansas as well as allow us to penetrate a new state,” said Robert Myers, president and CEO. “We are excited about this opportunity because Kabredlo’s is a very well established and managed chain in our market area.”
The acquisition is subject to certain approvals and is expected to close by the end of December.