Interesting piece in the Des Moines Register that provides some analysis and perspective on the battle between c-store giants 7-Eleven and Alimentation Couche-Tard to acquire Casey’s General Stores.
The piece suggests that 7-Eleven is a better fit for Casey’s for two reasons:
• “Casey's was an early adopter of in-store food sales and has perfected hot-food sales, which is something 7-Eleven has recently begun pushing in its stores.”
• “Casey's has its own warehouse and self-distribution of food and other products, which boosts profits by cutting down on middleman costs. The 7-Eleven chain has begun introducing self-distribution to some of its California stores and could probably learn from Casey's successful operation.”
7-Eleven has submitted a $2 billion bid to acquire Casey’s General Stores’ 1,531 stores in the midwest. The $40 per share bid trumps a $38.50 bid by Canada’s Couche-Tard, which has been rejected by the Casey’s board. Casey’s has said to this point that both offers undervalue the company, and that its analysts believe that the company should fetch $45 per share.
The piece suggests that 7-Eleven is a better fit for Casey’s for two reasons:
• “Casey's was an early adopter of in-store food sales and has perfected hot-food sales, which is something 7-Eleven has recently begun pushing in its stores.”
• “Casey's has its own warehouse and self-distribution of food and other products, which boosts profits by cutting down on middleman costs. The 7-Eleven chain has begun introducing self-distribution to some of its California stores and could probably learn from Casey's successful operation.”
7-Eleven has submitted a $2 billion bid to acquire Casey’s General Stores’ 1,531 stores in the midwest. The $40 per share bid trumps a $38.50 bid by Canada’s Couche-Tard, which has been rejected by the Casey’s board. Casey’s has said to this point that both offers undervalue the company, and that its analysts believe that the company should fetch $45 per share.
- KC's View:
