Casey’s To Acquire 198 CEFCO Convenience Stores Across The South

What started in humble beginnings in the middle of Iowa is quickly growing to be a top nationally known gas station and convenience store chain.

Casey's, which is the 3rd-larges convenience store chain in the United States, is based out of Iowa. With more than 2,600 stores across the Midwest and South, people in communities that Casey's serves get the pleasure of having their delicious breakfast pizza any day of the week they want it.

Soon, 198 other stores across the southern region of the U.S. will be turned into more breakfast pizza heaven.

Casey's Acquires 198 CEFCO Stores

Casey announced they are buying Texas-based Fikes Wholesale, Inc. and are the owners of CEFCO Convenience Stores. In a press release, Casey's says that the all-cash transaction is worth $1.145 billion. The purchase price includes tax benefits valued at approximately $165 million for a net after-tax purchase price of $980 million.

With the acquisition of the 198 stores from Fikes, Casey’s footprint will increase to nearly 2,900 stores. The acquisition will bring 148 additional stores to Texas, a highly strategic market for Casey’s, as well as 50 stores in the southern states of Alabama, Florida, and Mississippi.

"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," said Raymond Smith, President of Fikes and CEFCO. "We believe Casey’s will be an excellent steward of the CEFCO experience that our loyal customers have come to expect.”

“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," said Darren Rebelez, Board Chair, President, and CEO of Casey’s. "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.”

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.

The transaction is anticipated to close during the fourth quarter of calendar year 2024, subject to customary closing conditions and regulatory approval. See more about Casey's expansion here.