Casey's Agrees to Acquire 198 CEFCO Convenience Stores


   
    

    

   OAKHURST, N.J. (DTN) --- Casey's General Stores, Inc. today announced an 
agreement to acquire Fikes Wholesale, Inc., owner of CEFCO Convenience Stores, 
in an all-cash transaction for $1.145 billion. The acquisition includes 198 
retail stores and a dealer network and will increase Casey's footprint to 
nearly 2,900 stores.

   The acquisition will bring 148 additional stores to Texas, which is a highly 
strategic market for Casey's, as well as 50 stores in the southern states of 
Alabama, Florida, and Mississippi. In addition to the retail stores and dealer 
locations, the transaction includes a fuel terminal and a commissary to support 
the Texas stores. The transaction is anticipated to close during the fourth 
quarter.

   The purchase price includes tax benefits valued at approximately $165 
million for a net after-tax purchase price of $980 million. The company plans 
to finance the transaction through balance sheet cash and bank financing. The 
net investment of $980 million represents an approximate multiple of 11 times 
CEFCO's pro forma adjusted 2023 EBITDA. The company expects to achieve 
approximately $45 million in annual run-rate synergies upon the completion of 
kitchen installations in the acquired stores.

   "During our Investor Day presentation in June of 2023, we outlined our 
business strategy to achieve top-quintile EBITDA growth. One of the core 
pillars of the plan is to grow the number of units," said Darren Rebelez, board 
chair, president and CEO of Casey's. "This acquisition will allow Casey's to 
accelerate our unit growth plan with high-quality assets that, along with our 
recent 22 store acquisition in northern Texas, will provide an expanded 
presence in Texas and allow us to continue to expand in the state and region."

   Rebelez added, "We expect the acquisition will create value for Casey's 
shareholders in the near- and long-term and will be accretive to Casey's EBITDA 
in the current fiscal year. Fikes is a well-run and well-respected company in 
our industry, and we look forward to welcoming the Fikes team to the Casey's 
family. We could not be more excited about the future of our two organizations."




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