Dive Brief:
- Alimentation Couche-Tard must divest 35 fuel locations to resolve antitrust concerns and close its $1.57 billion acquisition of GetGo Cafe + Market, the 270-location c-store arm of grocer Giant Eagle, the Federal Trade Commission announced on Thursday.
- Majors Management will acquire these locations, which are located across 35 markets in Indiana, Ohio, and Pennsylvania. This appears to be Majors’ first foray into Indiana, although a company spokesperson did not respond by press time when asked to confirm this information.
- Once the deal closes, GetGo will operate as a separate business unit led by Vice President of Operations Mike Maraldo, who became the banner’s top executive after former President Terri Micklin departed in the spring, according to an announcement from Couche-Tard.
Dive Insight:
GetGo’s senior operations leaders, management and functional support staff will remain at Giant Eagle's corporate campus in Cranberry Township, Pennsylvania once the deal closes.. In addition, GetGo's brand, programs and offers will continue, including the popular myPerks loyalty program that it shares with Giant Eagle.
The deal is expected to close “in the coming days,” Couche-Tard President and CEO Alex Miller said during the company’s earnings call on Thursday.
"GetGo has built an extraordinary brand on the strength of a best-in-class food program, an exceptional store experience and a compelling offer activated by an amazing team that is passionate about their customers and communities," Miller said in the company announcement. "We are very pleased to welcome them to the Couche-Tard team."
Couche-Tard must divest the 35 stores within 20 days of closing the GetGo deal and cannot re-acquire any of the locations for 10 years, the FTC said. It must also let the FTC know before acquiring any “competitively significant” stores in those parts of Indiana, Ohio and Pennsylvania for the next decade.
The stores include 34 Circle K locations and one GetGo site.
“This anticompetitive acquisition threatened to make Americans pay more at the pump by raising fuel prices,” said Daniel Guarnera, director of the FTC’s Bureau of Competition. “The FTC’s action today preserves competition between gas stations that is critical for keeping fuel prices in check. The FTC will keep a watchful eye on retail fuel markets to make sure American consumers can spend less on gas and keep more money in their pockets.”
This isn’t the first time Majors Management and Couche-Tard have worked together on getting a deal done. When Majors Management agreed to buy MAPCO in 2023, Couche-Tard bought 112 of the stores as part of the transaction.
“Majors is well-positioned to compete effectively and ensure that competition is fully maintained in the markets that would otherwise be impacted by ACT’s proposed acquisition,” said FTC Commissioner Mark R. Meador in a statement.
Once the GetGo deal is complete, Couche-Tard can turn its M&A team’s full attention to its proposed Seven & i buyout. Miller said during the company’s recent earnings call that a decision on if a deal can be reached may not take much longer.
