After a whirlwind of a year, from acquisition talks, store closures, new-to-industry additions and everything in between, 7-Eleven parent company Seven & i Holdings has doubled down on its organic growth strategy.
According to a recent report from Reuters, the company has plans to introduce 500 new c-stores across the U.S. and Canada through 2027. A Seven & i spokesperson confirmed to Reuters that the long-term plan is to grow to 100,000 stores in 30 countries and regions by 2030.
Currently, Seven & i operates more than 15,000 stores in North America, but has been closing underperforming locations. The company announced in October that it would be shuttering 444 sites throughout the region.
Growing Amid Acquisition Talks
Another development in the Seven & i saga was the recent acquisition bid of $58 billion from a member of the company’s founding family in an effort to take the company private. The offer is from Ito-Kogyo, a company with links to Vice President Junro Ito and a top shareholder for 7-Eleven. The bid marks a significant jump from Alimentation Couche-Tard’s initial $47 billion bid.
The offer is non-binding and under review by the same special committee that reviewed the Couche-Tard bid.
“The special committee, which is comprised solely of the company’s independent, outside directors, has been reviewing the proposal carefully and thoroughly with its financial and legal advisors,” 7&i noted in a statement. “Mr. Ito has been excluded from all discussions within the company, including board discussions, relating to any proposal from Mr. Ito and Ito-Kogyo, Alimentation Couche-Tard or any other competing proposals.”
Reuters also reported that talks between Couche-Tard and 7&i have progressed, which is notable since the Japanese company was originally hesitant to enter an open discussion. Additionally, the Couche-Tard bid has allegedly been increased from $47 billion to $48 billion.
“We are committed to an objective review of all alternatives before us as we consider proposals from Mr. Ito and Ito-Kogyo, from (Couche-Tard), as well as the company’s stand-alone opportunities to unlock shareholder value,” said Stephen Hayes Dacus, chair of the special committee and board of directors for the company. “The special committee and the company board will continue to engage with all parties in a manner designed to maximize value and will continue to act in the best interests of the company’s shareholders and other stakeholders.”
7&i wrote in the statement that it will continue to focus on executing its business plans and “actionable avenues the company sees to realize and unlock shareholder value in the near- to medium-term,” noting that there is no guarantee that a transaction will take place in the future.
If the reported $58 billion bid were to go through, it would mark the largest management buyout in history.
