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Wisconsin independents make asset swap
Wisconsin independents Gordy’s Market and Mega Co-op have announced an asset swap of stores and fuel centers.
January 6, 2016
2 Min Read
Wisconsin independents Gordy’s Market and Mega Co-op have announced an asset swap whereby Gordy’s will acquire three Mega Co-Op stores while the latter will acquire 14 Gordy’s Express convenience stores and fuel centers.
The companies said Gordy’s would convert Mega Co-Op stores in Eau Claire (Clairemont Avenue), Barron and Whitehall, Wis., to the Gordy’s Market banner, while Mega converts the Gordy’s Express c-stores to its Mega Holiday brand. As part of the deal the Mega Co-Op store on Hastings Way in Eau Claire, will close.
Financial terms were not disclosed. The companies expect the deal will be complete late next month.
“This is an exciting opportunity and a true win-win for both organizations,” David Schafer, CFO of Gordy’s, said in a release. “This transaction will allow two strong, locally owned companies to bring enhanced value to our customers throughout western Wisconsin.”
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“Both companies will be bigger and stronger as a result of this agreement,” Mike Buck, president of Mega Co-op, added. “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.”
While the companies will remain separate, they plan to collaborate on future new locations and support one another with joint loyalty programs, including a Pump Perks and Gas Rewards Program, with rewards to be available at all Gordy’s and Mega Holiday locations.
In a separate announcement this week, distributor SpartanNash said it would replace Supervalu as the primary distributor for Gordy’s, which is based in Chippewa Falls, Wis. Mega Co-Op is based in Eau Claire.
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