3 Big Numbers is a weekly column that looks at a few key details from around the c-store industry.
News continues to swirl around the proposed tie-up between Circle K parent company Alimentation Couche-Tard and 7-Eleven’s owner Seven & i Holdings.
Three of the latter’s board members stepped down this week — one of whom was 7-Eleven Inc. CEO Joseph DePinto. This comes in the wake of a storm of changes at the convenience retailer last week, including naming a new president for Seven & i and an upcoming initial public offering of 7-Eleven in North America.
Meanwhile, Couche-Tard further touted its plans for acquiring Seven & i this week as it tries to make its case amid the din.
In today’s “3 Big Numbers,” we turn our attention toward the Canadian half of this proposed deal and delve into what Couche-Tard brings to the table.
208
The number of days that have passed since Couche-Tard revealed its intentions to acquire Seven & i.
Couche-Tard first told the world about its current pursuit of Seven & i last August, on the same day it announced its agreement to purchase GetGo Cafe + Market from grocer Giant Eagle. Since then, 208 days have passed while Seven & i weighs — or perhaps tries to fend off — that offer. During that time, the c-store industry has also seen a rival bid from a group led by one of Seven & i’s major shareholders quickly take shape, then fizzle out.
While some of Seven & i’s investors have encouraged the company to engage without delay, it’s not rare for the negotiations and due diligence phase of an acquisition to take months before a decision is reached. Given both companies’ sizes, as well as the regulatory hurdles that may stand in the way of them merging, it’s not surprising for it to take this long.
73%
The percent of Couche-Tard’s c-stores it added via M&A.
One of Seven & i’s major objections to the takeover bid so far has been the likelihood of getting regulatory approval in the U.S., with the Japanese retailer noting that a divestment package would likely need to include more than 2,000 sites. As the failed merger between grocers Albertson’s and Kroger showed, this can throw a big wrench in the works if not handled right.
While making its pitch to Seven & i, Couche-Tard has been playing up its history of successful M&A. A buyout of Seven & i is much larger than any of its past deals, but Couche-Tard argues that history shows it’s well equipped to acquire and integrate a large volume of stores.
On a website it created specifically to discuss the takeover offer, Couche-Tard noted that 73% of its current store footprint is made up of acquired sites. While this incorporates a number of deals in the U.S. that included hundreds of sites, Couche-Tard’s global store count also resulted from last year’s acquisition of TotalEnergies in Europe, which included over 2,000 locations.
$69.3 billion
Couche-Tard’s total revenue in 2024.
As discussed above, this is a big acquisition — Seven & i is the largest convenience store company in the world. Couche-Tard’s revenue last year was $69.3 billion, according to the website it created, while. 7-Eleven’s revenue in North America alone almost reaches that point, totaling $59.7 billion.
More broadly, Seven & i posted nearly 18 trillion yen in sales in fiscal 2023. That’s over $120 billion at today’s exchange rate.
If this deal does end up coming to fruition, it’ll be interesting to see how Couche-Tard integrates Seven & i — and how the rest of the industry adjusts to a supersized new competitor.
