Casey’s to acquire CEFCO convenience stores in $1.15bn deal

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Casey’s General Stores, a US chain of convenience stores, has agreed to acquire Fikes Wholesale, the owner of CEFCO convenience stores, in a deal worth $1.15 billion.

The purchase price includes tax benefits estimated at $165 million for a net after-tax purchase price of $980 million.

Fikes Wholesale, which began as a single 'filling station' in Cameron, Texas, in 1952, operates 198 retail outlets and a dealer network across multiple states. The acquisition will expand Casey’s network to nearly 2,900 stores, adding 148 locations in Texas and 50 in Alabama, Florida and Mississippi. The deal also includes a fuel terminal and commissary to support the Texas operations.

Darren Rebelez, board chair, president and CEO of Casey’s, said: “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.”

Raymond Smith, president of Fikes and CEFCO, highlighted: “The acquisition by Casey’s, especially given its reputation and shared values, is an exciting development for Fikes and our employees. 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. We believe Casey’s will be an excellent steward of the CEFCO experience that our loyal customers have come to expect.”

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 organisations.”

The deal is expected to close in the fourth quarter of 2024, pending regulatory approval. Casey’s will fund the transaction with cash and bank financing, targeting $45 million in annual run-rate synergies after completing kitchen upgrades at the newly acquired stores.