Ankeny, Iowa Casey's General Stores said its board of directors rejected an unsolicited proposal from Canadian convenience store operator Alimentation Couche-Tard to acquire Casey’s for $1.8 billion cash. Couche-Tard was offering $36 a share, which represented a 14% premium over Casey’s closing share on Thursday.
Casey’s, based in Ankey, Iowa, operates 1,478 stores, mostly in the Midwest.
In a letter to Alain Bouchard, president and CEO of Laval, Quebec-based Couche-Tard, Casey’s CEO Robert Mayers stated: “We are very disappointed that you have decided to launch a hostile public campaign regarding your unsolicited proposal to acquire Casey's for $36.00 per share in cash. Your proposal significantly undervalues Casey's and is not in the best interests of the corporation. We are very excited about the many opportunities ahead to continue growing our business and deliver superior value to shareholders.”
Couche-Tard currently operates a network of 5,883 stores in Canada and the United States. It bills itself as the largest independent c-store operator in North America in terms of company-operated stores.