Casey's expands footprint in 2 states
Leading convenience chain Casey’s General Stores is expanding its presence in two states. The company has agreed to acquire 40 Pilot convenience stores in Kentucky and Tennessee to help expand its revamped private label line and prepared hot foods, which have already proved to be a hit. The new private label products helped grow inside store sales at the convenience chain during Q1 of 2021, reaching 4.4% share of total grocery and general merchandise sales for the three-month quarter ending July 31.
Casey’s operates over 2,300 convenience stores currently, and is now the third-largest convenience store and fifth-largest pizza chain in the United States. The 40-store deal with Pilot Corporation will cost Casey’s $220 million.
“These stores have a track record of strong performance, and are high quality assets that will be a great fit for Casey’s fresh food program, especially our handmade pizza,” said Darren Rebelez, president and CEO at Casey’s. “We look forward to carrying forward these Haslam family legacy stores and welcoming their team into the Casey’s family.”
Casey’s will fund the transaction with a combination of cash on hand and bank financing. Pilot’s convenience stores are owned and operated independently from its travel center and energy businesses and were not included in the Berkshire Hathaway transaction.
“Casey’s is a great convenience store chain that shares similar values as Pilot and we couldn’t be more excited for what they will bring to the community,” said Pilot Company chairman Jimmy Haslam. “We are very thankful for the tremendous service our team members have provided and know they will be in great hands with Casey’s. Pilot and the Haslam family will always be committed to the Knoxville community, our philanthropic efforts and being a top employer in the region.