7-Eleven Canada announced that it has acquired certain assets of Calgary-based food distributor Wallace & Carey Inc. for an undisclosed amount. The assets included in the deal are in British Columbia and Alberta.
The transaction occurred under a sale pursuant to the Companies’ Creditors Arrangement Act (CCAA). In the arrangement, 7-Eleven Canada acquired lease facilities from the company and agreed to provide a transition service agreement to purchase exclusively from Wallace & Carey.
The convenience retailer also offered Wallace & Carey working capital to support the company’s return to a stable operating position across Canada.
"This transaction positions 7-Eleven well for continued growth in Canada, strengthening our already robust business in the country and bringing with it a range of long-term benefits for our stores by stabilizing our supply chain" said Marc Goodman, vice president and general manager of 7-Eleven Canada.
He added, "We feel confident that this acquisition will bring the maximum quality of service to our stores so that we can continue to serve our customers at the highest level."
"7-Eleven is a long-standing customer of Wallace & Carey, and we're excited to further strengthen our partnership," said Wallace & Carey CEO Pat Carey. "Wallace & Carey will continue its day-to-day operations as usual, and we expect to emerge from this process better positioned for the future."
The acquisition comes after Wallace & Carey and its owner, Carey Management Inc., filed for creditor protection under the CCAA in June 2023.
Based in Calgary, Canada, Wallace & Carey provides distribution and logistics to more than 7,000 customer locations and major retailers. The company specializes in groceries, health and beauty products, confections, frozen foods and tobacco products.
The convenience retailer made news recently when 7-Eleven Japan announced its use of generative artificial intelligence (AI) in its product planning strategy. The company expects the use of generative AI will streamline the current product planning process, which currently uses customer surveys and internal meetings before taking a product to market.