Couche-Tard Acquires GetGo from Giant Eagle
Alimentation Couche-Tard Inc. (TSX: Couche-Tard, the operator of Circle K and Couche-Tard branded convenience stores, today announced that it has signed a definitive agreement to purchase GetGo Café + Markets from Giant Eagle at a price that has not been disclosed.
It is planned to be completed by 2025 contingent on the receipt of regulatory approvals.
This is a major shift in strategy for Couche-Tard and establishes it as a major player in the convenience and mobility space as well as expanding its foodservice capabilities.
GetGo which focuses on the convenience food market has approximately 270 outlets in Pennsylvania, Ohio, West Virginia, Maryland, and Indiana.
These stores, which provide employment to about 3,500 people, are in the form of open cafes to self-contained kiosks and all offer made-to-order hot food menus.
The deal also involves the two companies' promise to sustain and develop Giant Eagle’s exceptionally successful myPerks rewards program.
This means that GetGo customers will be able to continue the program while increasing the opportunity for the program to be offered to more stores under Couche-Tard.
Couche-Tard’s President and CEO Brian Hannasch showed interest in getting GetGo into the company. He accepted the brand’s customer loyalty, high-quality stores, and new concepts in food service which he noted were some of the reasons for the acquisition.
Hannasch also stressed the fact that Couche-Tard will also be keen on adopting the strategies that GetGo has developed in the past and then work together to create more success stories in the future.
Bill Artman, the CEO of Giant Eagle, was another executive who shared the positive outlook.
"We are energized by the potential for both Giant Eagle and GetGo as a result of this transaction," added Bill Artman, Chief Executive Officer of Giant Eagle.
He feels that this transaction will benefit Giant Eagle in that it can now concentrate on its supermarket and pharmacy operations, while at the same time, giving GetGo the backing of a powerful partner like Couche-Tard.
The official press release and CBS News reported that:
With this acquisition, Couche-Tard expands its operations in the global market even more. The company currently has over 16,700 outlets in 31 countries and territories, of which about 13,100 offer vehicle fuel.
Couche-Tard is already one of the largest convenience store operators in North America and Europe and with the acquisition of GetGo, it has the potential to become one of the biggest players in the fast-emerging food service segment of the convenience stores market.
The official announcement did not reveal the details of the financial aspect of the deal, but the effects on Couche-Tard will be profound. To fund the acquisition, the company will use cash and cash equivalents and credit facilities which are available.
The merger of GetGo with Couche-Tard is a strategic one that will see both companies grow in the future.
Couche-Tard gets a good position in the food service convenience market, and Giant Eagle can concentrate on grocery operations.
The future is yet to tell, but this deal can alter the convenience store sector in the northeastern part of the United States.
