Casey’s ends talks with 7-Eleven, buys Nebraska C-store chain

Merger talks between Casey's General Stores Inc. and 7-Eleven Inc. have ended with no deal, according to Casey's, which also announced a deal Wednesday, Nov. 3, to acquire some 44 stores from the Kabredlo's convenience store chain.

Casey's, based in Ankeny, said 7-Eleven's revised proposal of $43 per share cash for Casey's stock “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.”

Shares of Casey's stock fell by 4.5 percent, or $1.87 per share to $39.57 on news of the development at mid-morning Wednesday.

It was the second merger offer Casey's has rejected after a relatively stagnant period in the company's stock price. Alimentation Couche-Tard of Canada had offered a lower price in a hostile takeover offer. That bid ended when Couce-Tard's attempt to seat a board slate was soundly rejected at Casey's annual shareholders meeting.

The friendly takeover bid from 7-Eleven came after Casey's had dismissed Couche-Tard's $38.50 per share offer as two low. The initial 7-Eleven offer was $38.50 per share.

Casey's announced the end of the 7-Eleven talks early Wednesday, ov., 3, as it announced plans to acquire up to 44 stores from Lincoln, Neb.-based Kabredlo's for an undisclosed price.

The stores include 22 in Nebraska, 21 in Kansas and one in Oklahoma.

Casey's President and CEO Robert Myers said the deal will expand Casey's presence in Nebraska and Kansas, while allowing it to enter the Oklahoma market.

“We are excited about this opportunity because Kabredlo's is a very well established and managed chain in our market area,” Myers said. He said the Kabredlo's locations will be converted to Casey's General Stores.

The deal is expected to add to Casey's earnings in the first year of operations and enhance Casey's earnings in future years through efficiencies gained and the integration of Casey's food operations in the Kabredlo's location.

The deal is contingent on unspecified regulatory approvals and other closing conditions, including inspection reports on the Kabredlo's stores.