7-Eleven Gtanchise Confirms Discussions With Casey's Have Terminated
World's Largest Convenience Store Operator Plans Aggressive Store Growth Over Next Several Years
DALLAS --(BUSINESS WIRE)-- 7-Eleven, Inc. ("7-Eleven") confirmed today that discussions with Casey's General Stores, Inc. ("Casey's") regarding a potential transaction have terminated. 7-Eleven made a preliminary proposal of $40.00 per common share for a consensual transaction on September 2, 2010. After completing additional due diligence, 7-Eleven raised its offer to $43.00 per common share. 7-Eleven believes its revised proposal fairly values Casey's.
"While we are no longer in talks with Casey's regarding a transaction, our strategy is to grow aggressively in the U.S. and Canada. We will continue to pursue transactions that make sense for our company to maximize shareholder value," stated Joe DePinto, 7-Eleven's president and CEO. "Expanding our store base enables us to further leverage our merchandising expertise, proprietary distribution network and scale in order to provide more convenience to our customers," added DePinto.
The U.S. convenience store industry is highly fragmented with the majority of the industry comprised of small chains or independent owners. As consolidation in the convenience store industry has increased, 7-Eleven has ramped up its merger and acquisition efforts, closing several deals in 2010. In addition to acquisitions, the company is focused on its Business Conversion Program (BCP), a conversion of existing convenience stores to the 7-Eleven brand, and organic growth.
"7-Eleven has the size, scale and financial flexibility to aggressively increase its store base over the next several years," stated Stan Reynolds, 7-Eleven's executive vice president and chief financial officer. "We have a strong balance sheet, solid operating results and the resources to add significantly to our asset base. We intend to grow while maintaining a disciplined investment approach and a conservative capital structure."
7-Eleven expects to add over 300 stores in 2010 throughout the U.S. and Canada. The company operates, franchises or licenses more than 8,200 stores in North America.
About 7 Eleven, Inc.
7 Eleven, Inc. is the premier name and largest chain in the convenience retailing industry. Based in Dallas, Texas, 7-Eleven operates, franchises or licenses more than 8,200 7-Eleven® stores in North America. Globally, 7-Eleven operates, franchises or licenses more than 39,000 stores in 16 countries. During 2009, 7-Eleven stores worldwide generated total sales of more than $58.9 billion. 7-Eleven has been honored by a number of companies and organizations recently. Accolades include: #3 spot on Entrepreneur magazine's Franchise 500 list for 2009, #3 in Forbes magazine's Top 20 Franchises to Start, #3 among Top 100 Global Franchises by Franchise Direct, #3 in Store Growth by Convenience Store News, #2 in Franchise Times Top 200 Franchise Companies and #29 among Top 100 Chains in Food Service. In addition, Hispanic Magazine named 7-Eleven in its Hispanic Corporate Top 100 recognizing companies that provide the most opportunities to Hispanics. 7-Eleven recently was selected by three diversity publications as a company offering the best career and franchisee opportunities. 7-Eleven is franchising its stores in the U.S., and is expanding through organic growth, acquisitions and its Business Conversion Program. In addition, the company received the 2009 Shopper-Centric Marketing Innovation from Symphony IRI and the 2010 Retailer of the Year award from PL Buyer because of the company's private-label brand program. Find out more online at www.7-Eleven.com.