Casey's General Stores Places Bid for Kroger's C-Stores
DES MOINES, IA - This October, Kroger announced plans to explore acquisition opportunities for its nearly 800 convenience stores, worth a reported $2 billion. Due in early February, the the company has thus far reportedly field bids from a variety of suitors, include Casey’s General Stores Inc., which, according to CNBC, submitted an initial bid and is working with an investment bank throughout this process.
With about 784 stores under the banners Kwik Shop, Turkey Hill, and Tom Thumbnow up for grabs, stores worth nearly $4 billion in annual sales, the acquisition of Kroger c-stores by Casey's could ease pressure to find strategic alternatives like a potential sale from the chain’s activist investors JCP Investment Management, BLR Partners, and Joshua Schechter, reported Reuters. Pressure is, in part, from Casey’s undervalued stocks, the news outlet reported.
With all the excitement swirling around the possibilities for Kroger’s c-store’s many locations, it’s important to note that the sources reporting on the announcements have chosen to remain anonymous since nothing has been set in stone yet.
Reuters reported that Casey’s shares closed at 2.7 percent at $127.73, and Kroger’s closed at 2 percent at $30.88, as of January 26th. According to CNBC, Terry Handley, Casey’s CEO, stated that the company would “further augment unit growth with acquisition opportunities.”
How will the acquisition transform the convenience stores, and will the takeover include more of the fresh produce our industry knows and loves? For more developing stories in our industry, keep checking back with us at AndNowUKnow!