NEW INFORMATION: Gordy's, Mega reach agreement involving grocery stores, gas stations

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EAU CLAIRE, Wis. (WEAU) -- An agreement between two area companies will create a single rewards program for gas customers.

On Tuesday, Gordy's Market and Mega Co-op announced they have reached an agreement. Gordy's plans to buy three Mega Co-op grocery stores: Mega West in Eau Claire, Mega Co-op in Whitehall and Mega Co-op in Barron. David Schafer of Gordy's said that Mega East in Eau Claire will close as part of the deal. He did not know when that store would close. Gordy’s will sell its Express convenience stores and fuel centers to Mega, where they will become Mega Holiday gas stations.

Schafer said the 'Pump Perks' and 'Gas Rewards' that customers acquire before the deal closes will still be accepted at the Mega Holiday stations. The two companies say they plan to collaborate on "future new locations" and support each other with joint programs, including the 'Pump Perks' and 'Gas Rewards Program.'

"We're going to change it all over to the 'Gas Rewards Program,' which is what Mega currently brands it as," said David Schafer of Gordy's. "You'll be able to use it at all 33 locations."

When asked about the terms of the agreement, Schafer said they were "highly confidential." A statement on the deal said that both companies will maintain their existing corporate offices. It also said the leaders of both companies are working hard to minimize any job losses with this transaction. It's expected to close late next month.

EAU CLAIRE, Wis. (GORDY'S MARKET/MEGA CO-OP NEWS RELEASE) -- Gordy’s Market and Mega Co-op are excited to announce 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 this 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.

According to David Schafer, Chief Financial Officer of Gordy’s County Market, “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.” Mike Buck, President of Mega Co-op, said, “Both companies will be bigger and stronger as a result of this 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.” Both companies are looking forward to bringing their brands to more communities in western Wisconsin. 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. Schafer and Buck both are excited to announce that these joint programs will provide added value and convenience to their customers with the rewards being available at all of the Gordy’s Markets and Mega Holiday locations.

All of the Gordy’s locations, and all but one of the Mega Co-op locations will remain open. Mega-West, Barron and Whitehall will become Gordy’s Markets. The Mega Co-op East will close as part of this transaction. 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. Gordy’s and Mega Co-op combined employ close to 2500 people in western Wisconsin. Schafer and Buck say they are working hard to minimize any job losses with this transaction.

Both companies have deep roots in the communities they serve. Gordy’s will celebrate its 50th anniversary in 2016 and Mega Co-op has an 81 year history in Eau Claire. Both Gordy’s and Mega Co-op are especially proud of their support and sponsorship of numerous community groups and events. Mike Buck and David Schafer have both said, “We expect this alliance will create even more opportunities to give back to the communities and neighborhoods that we serve.”

This transaction is expected to close in late February.