Casey’s General Stores, under pressure from activist investor JCP Investment Management, has submitted an initial bid for Kroger’s roughly $2 billion convenience-store business, sources familiar with the situation tell CNBC.
JCP Investment Management in January called for the Ankeny, Iowa-based convenience store operator to explore strategic alternatives, including a potential sale. Buying Kroger’s convenience-store business could stave off pressure to sell, sources say. Casey’s in 2010 successfully fended off a hostile bid from larger peer Alimentation Couche-Tard.
JCP, along with BLR Partners and Joshua Schechter, collectively own $45 million of Casey’s common stock, as of Jan. 3. Casey’s has a market capitalization of $4.6 billion.
Kroger announced in October it was exploring strategic alternatives for its more than 780 convenience stores, which operate under names such as Kwik Shop, Turkey Hill and Tom Thumb. It said it is working with Goldman Sachs on the potential sale.
Casey’s, which is working with an investment bank, is one of several parties looking to buy the stores and may not ultimately be the victor. Final offers in the sale process are due in early February, the sources said.
Keep reading:
Kroger Considers Sale Of C-Store Business Generating $4B In Sales
Kroger’s Simple Truth Brand Hits Milestone $2 Billion In Annual Sales
