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Costco Wholesale Corporation

Membership warehouse retailFounded 1983
Reviewed by Swet Parvadiya
Company data updated: October 2026

Acquisitions

Costco Acquisitions

3

Major Deals Covered

$3.3B

Disclosed Deal Value

What are Costco's biggest acquisitions?

Costco's largest disclosed acquisition here is Price Club for $1.2B in 1993. This page covers 3 major deals from 1993 to 2022, each with its price where disclosed and the reason behind it.

Major deals covered
3
Largest deal
Price Club ($1.2B)
First deal
1993
Most recent
2022
CompanyYearPricePurpose
Price Club1993$1.2BThe merger with Price Club was designed to consolidate two warehouse-club pioneers into a single stronger retailer. It removed a direct competitor, expanded Costco's store base, increased purchasing volume, and strengthened the company's California presence. The deal mattered because warehouse economics improve when volume improves supplier terms and lets low prices become more defensible.
Innovel Solutions2020$1.0BCostco acquired Innovel Solutions from Transform Holdco to strengthen delivery and installation capabilities for big and bulky products such as appliances, furniture, mattresses, and fitness equipment. The acquisition addressed a real gap in Costco's e-commerce model: members increasingly expected delivery convenience, but outsourcing every complex delivery weakened control over service quality.
Costco-Taiwan (President Costco Wholesale Corp. 45% minority stake)2022$1.1BCostco Wholesale Corporation purchased the remaining 45% minority interest in its joint venture President Costco Wholesale Corp. (Costco-Taiwan) for $1.05 billion cash, gaining 100% full ownership of its warehouse club operations in Taiwan.
What companies has Costco bought?
Major acquisitions by Costco documented here include Price Club (1993), Costco-Taiwan (President Costco Wholesale Corp. 45% minority stake) (2022) and Innovel Solutions (2020).
What is Costco's most recent acquisition?
The most recent Costco acquisition documented here is Costco-Taiwan (President Costco Wholesale Corp. 45% minority stake), in 2022, for $1.1B.

Costco-Taiwan (President Costco Wholesale Corp. 45% minority stake)

2022

$1.1B

Why

Costco Wholesale Corporation purchased the remaining 45% minority interest in its joint venture President Costco Wholesale Corp. (Costco-Taiwan) for $1.05 billion cash, gaining 100% full ownership of its warehouse club operations in Taiwan.

Impact

The deal brought full operational and financial control over 14 high-volume Taiwanese warehouse clubs, immediately adding to net earnings and cementing Costco's direct operating footprint in East Asia.

Outcome

Costco successfully transitioned Taiwan from a joint venture to a wholly owned subsidiary, simplifying corporate governance and capturing 100% of the subsidiary's cash flows.

Source →

Innovel Solutions

2020

$1.0B

Why

Costco acquired Innovel Solutions from Transform Holdco to strengthen delivery and installation capabilities for big and bulky products such as appliances, furniture, mattresses, and fitness equipment. The acquisition addressed a real gap in Costco's e-commerce model: members increasingly expected delivery convenience, but outsourcing every complex delivery weakened control over service quality.

Impact

The acquisition gave Costco more control over last-mile logistics for large items and supported its broader digital modernization. It did not turn Costco into a marketplace-style retailer, but it helped the company defend high-value online categories where delivery execution matters. The deal appears aligned with Costco's cautious approach to e-commerce: improve convenience where it supports membership economics.

Outcome

Innovel helped Costco build a more credible large-item delivery network and reduce dependence on third parties for complex fulfillment. The acquisition achieved a practical operating goal rather than a brand transformation, which fits Costco's acquisition style.

Source →

Price Club

1993

$1.2B

Why

The merger with Price Club was designed to consolidate two warehouse-club pioneers into a single stronger retailer. It removed a direct competitor, expanded Costco's store base, increased purchasing volume, and strengthened the company's California presence. The deal mattered because warehouse economics improve when volume improves supplier terms and lets low prices become more defensible.

Impact

The merger created PriceCostco, which later became Costco Wholesale Corporation. It achieved its main goal by giving the combined company greater scale, broader geography, and stronger supplier bargaining power while preserving the low-price membership model. The transaction became the foundation for Costco's later national and international expansion.

Outcome

The merger created PriceCostco, which later became Costco Wholesale Corporation. It achieved its main goal by giving the combined company greater scale, broader geography, and stronger supplier bargaining power while preserving the low-price membership model. The transaction became the foundation for Costco's later national and international expansion.

Source →

Costco Wholesale Corporation's Growth & Acquisition Strategy

Costco grows mostly by itself rather than through acquisitions. It opened 28 warehouses in FY2026 (25 net new) and plans 33 in FY2027, while pushing members to upgrade to Executive, which raises fee income and spending per household. Digital is the fastest-growing channel: digitally enabled sales topped $33B in FY2026 with site and app traffic up about 30%. Costco also leans on ancillary businesses (gas, pharmacy, travel) that grew faster than the core in FY2026, and on supply-chain investments such as its Nebraska poultry complex and Costco Logistics for bulky items.

How Costco Wholesale Corporation Makes Money

Costco runs a membership warehouse club: shoppers pay an annual fee ($65 for Gold Star or Business, $130 for Executive in the U.S. and Canada since September 2024) to buy from a tightly edited assortment of roughly 4,000 items. Limited choice means huge volume per item, which gives Costco strong buying power with suppliers. Costco caps markups at about 14% on branded goods and 15% on Kirkland Signature, so merchandise earns thin margins and membership fees ($5.9B in FY2026) supply much of the profit. Gas stations, pharmacy, optical, hearing aids, tires and Costco Travel bring members back more often, and Kirkland Signature lets Costco set a quality and price benchmark against national brands.

Costco Acquisitions FAQ

What was the most important merger in Costco's corporate history?

The 1993 merger of Costco and The Price Company (Price Club) was the most important deal in Costco's history. It created PriceCostco with 206 locations and about $16B in annual sales and removed Costco's main West Coast rival.

Why did Costco acquire Innovel Solutions from Sears in 2020?

In March 2020, Costco acquired Innovel Solutions, a nationwide last-mile delivery and middle-mile logistics network, for $1.0 billion from Transform Holdco (Sears). Renamed Costco Logistics, the acquisition gave Costco complete control over nationwide home delivery, installation, and assembly of big-and-bulky items (appliances, furniture, televisions).

How did the acquisition of Innovel Solutions (Costco Logistics) accelerate online sales?

Costco Logistics enabled Costco to offer members professional white-glove two-person home delivery and appliance installation across the continental US, driving large double-digit growth in big-ticket e-commerce categories and lowering third-party freight costs.

How did Costco acquire the remaining 45% minority stake in Costco Taiwan in 2022?

In June 2022, Costco acquired the remaining 45% minority interest in its Costco-President Taiwan joint venture for $1.05 billion from President Chain Store Corporation, taking 100% full ownership of 14 highly lucrative, high-volume Taiwan warehouse clubs.

What is Costco's general philosophy regarding retail mergers and acquisitions?

Costco rarely engages in retail brand acquisitions, preferring 100% organic greenfield warehouse club expansion, building custom warehouses from the ground up, and only acquiring infrastructure (like logistics or joint venture minority stakes) that directly enhances member value.

Did Costco acquire any supplier factories to protect core product supply chains?

Rather than acquiring legacy consumer packaged goods corporations, Costco builds its own state-of-the-art vertical manufacturing plants, such as its industrial meat processing facilities in Tracy, California, and its Fremont, Nebraska poultry complex.

How did Costco acquire its early optical laboratory facilities?

Costco Optical grinds and coats many prescription lenses in its own optical labs, run through its manufacturing operations, which helps keep eyewear prices low.

What future M&A criteria does Costco management prioritize?

Costco prioritizes acquiring minority stakes in international joint ventures to achieve 100% wholly owned status, securing long-term real estate parcels, and expanding proprietary cold-chain logistics capabilities.

Does Costco buy other companies?

Almost never. Rather than acquiring competitors, Costco aggressively pursues "vertical integration." For example, to keep their rotisserie chickens at $4.99, they literally built their own massive $450 million poultry processing plant in Nebraska to completely bypass suppliers.

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Content is for informational purposes only. Not financial advice. Data sourced from SEC filings, annual reports, and public records. See our full disclaimer and methodology.