Mega and Gordy’s announce deal to acquire stores
Posted: January 8, 2016
Gordy's Market and Mega Co-op announced this week that they have reached an agreement that will allow each company to focus on their primary business. Under the new agreement, the Mega Co-op grocery stores will become Gordy's Markets and the Gordy's Express convenience stores and fuel centers will become Mega Holidays. When the transaction is complete, Gordy's will own and operate 24 grocery stores and Mega Co-op will own and operate 33 convenience stores and fuel centers.
"This is an exciting opportunity and a true win-win for both organizations. This transaction will allow two strong, locally-owned companies to bring enhanced value to our customers throughout western Wisconsin," said Gordy's Market Chief Financial Officer David Schafer.
According to Mega Co-op President Mike Buck, both companies will become stronger as a result of the agreement.
"This helps ensure a positive future for both of our businesses and will allow us to focus on reinvestment, growth in a highly competitive environment and returning patronage to our cooperative members," said Buck, who added that the Mega Co-op East grocery store will close as part of the transaction.
While the companies will remain separate and independent, they plan to collaborate on future new locations and support each other with joint loyalty programs, including the Pump Perks and Gas Rewards program.
Mega West in Eau Claire, as well as the Mega Co-op stores in Barron and Whitehall, will become Gordy's Markets. All 14 of Gordy's Express convenience stores and fuel centers will become Mega Holiday locations. Both companies will maintain their current corporate office locations. Both Schafer and Buck said they are hoping to minimize any job losses with the transaction.
"We came to the conclusion that we'll be in the grocery business and they (Mega) will be in the gas business," said Gordy's Market President Jeff Schafer.
The deal is expected to close in late February. TBL