Convenience store chain Casey’s General Stores has agreed to acquire Fikes Wholesale, owner of CEFCO Convenience Stores. The all-cash transaction is valued at $1.145 billion, which Casey’s will finance through cash and bank financing. The transaction is anticipated to close in the fourth quarter of this year, subject to customary closing conditions and regulatory approval.
Fikes Wholesale and CEFCO began as a single filling station in Cameron, Texas in 1952 and have since grown to encompass 198 stores across multiple states as well as a dealer network. The acquisition will increase Casey’s footprint to nearly 2,900 stores, including 148 additional stores in Texas, a highly strategic market for Casey’s, as well as 50 stores in 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.
“During our Investor Day presentation in June 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 in a statement. “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.”
“The acquisition by Casey’s, especially given its reputation and shared values, is an exciting development for Fikes and our employees,” said Raymond Smith, President of Fikes and CEFCO in a statement. “I am happy that the CEFCO stores will join a top convenience retailer that will reinvest in the stores and eventually bring Casey’s pizza to many of our customers, as well as provide professional opportunities for our employees.”
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