Casey's to expand Texas footprint with $1.15bn acquisition
The acquisition of Fikes will include 198 retail stores and a dealer network.
Casey’s General Stores announced an agreement to acquire Fikes Wholesale, owner of CEFCO Convenience Stores, for $1.145 billion. Casey’s acquisition of Fikes will include 198 retail stores and a dealer network.
Fikes Wholesale and CEFCO Convenience Stores began as a single “filling station” in Cameron, Texas in 1952 and has grown to be a respected operator with stores in multiple states.
The proposed transaction will increase Casey’s footprint to nearly 2,900 stores, bringing 148 additional stores to Texas, which is a highly strategic market for Casey’s, as well as 50 stores in the southern states of Alabama, Florida, and Mississippi.
“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,” said Darren Rebelez, Board Chair, President and CEO of Casey’s.
In addition to the retail stores and dealer locations, the transaction includes a fuel terminal and a commissary to support the Texas stores.
The Iowa-based company, also known for its stores' pizzas, expects to add about $45 million in annual revenue after completing kitchen installations in the newly acquired stores.
