From staff reports We’ll soon see more of those Casey’s General Stores so familiar throughout Oklahoma.
The Iowa-based company announced a $1.145 billion acquisi tion of Fikes Wholesale Inc., which owns of CEFCO Convenience Stores in Texas and other states.
Casey’s acquisition of Fikes will include 198 retail stores and a dealer network. The proposed transaction will increase Casey’s footprint to nearly 2,900 stores. The acquisition will bring 148 additional stor es 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. In addition to the r etail stores and dealer locations, the transaction includes a fuel terminal and a commissary to support the Texas stores.
“This acquisition will allow Ca sey’s to accelerate our unit growth plan with high-quality assets that, along with our recent 22-store acquisition in nor thern Texas, will provide an expanded presence in Texas and allow us to con tinue to expand in the state a nd region,” stated Darren Rebelez, Board Chair, President and CEO of Casey’s.
The company plans to finance the transaction through balance sheet cash and bank financing. The net investment of $980 million r epresents 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.
Fikes Wholesale Inc. and CEFCO Convenience Stores began as a single “filling station” in Cameron, Texas, in 1952 a nd has grown to be a respected operator with stores in multiple states.