Casey's General Store To Acquire CEFCO Convenience Stores
Casey’s General Stores has reached an agreement to acquire Fikes Wholesale, owner of CEFCO Convenience Stores.
The $1.145 billion all-cash transaction includes tax benefits valued at approximately $165 million for a net after-tax purchase price of $980 million.
The proposed transaction will increase Casey’s footprint to nearly 2,900 stores. The acquisition will give Casey’s 148 additional stores in Texas, as well as 50 stores in Alabama, Florida, and Mississippi. The transaction also includes a fuel terminal and a commissary to support the Texas stores.
Fikes Wholesale, Inc. and CEFCO Convenience Stores were founded in 1952 when the company started as a single “filling station” in Cameron, Tex.
“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.”
“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. “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.”
Fikes Wholesale, Inc. and CEFCO Convenience Stores began as a single “filling station” in Cameron, Tex., in 1952 and has grown to be a respected operator with stores in multiple states. Casey’s acquisition of Fikes will include 198 retail stores and a dealer network.
The company plans to finance the transaction through balance sheet cash and bank financing and 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.
