Casey's General Stores to Buy Fikes Wholesale for $1.15B
Casey's General Stores, Inc. has agreed to buy Fikes Wholesale, Inc. for about $1.15 billion, in a move that will expand its presence in the hot Sunbelt market.
The deal will expand Casey's portfolio by 198 stores to bring its total count to almost 2,900, the convenience chain announced. Plus, it will get a dealer network. All the brick-and-mortar locations are located in the Sunbelt market, with a big chunk (148) in Texas alone. The remaining 50 stores have presences in Mississippi, Florida, and Alabama.
The deal will also give the Texas locations support with fuel terminals and commissaries. Fikes owns the brand CEFCO Convenience Stores.
"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," Darren Rebelez, board chair, president and CEO of Casey's, said in a statement.
"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. 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."
The move adds to its activity in rent years in acquiring stores. From January 2022 to April 2024, Casey's in its PowerPoint presentation, following the Fikes deal, said it added 178 stores to its portfolio. This includes the company's purchase of 22 Lone Star Food Stores in Texas in 2023.
Assuming the deal closes, which Casey's expects to happen in the fourth quarter, it will give the retail operator 170 stores in Texas and 50 in the three other Southern states, according to a report from C-Store Dive.
Across the board in CRE, the sunbelt markets have been booming thanks to consumers and businesses migrating to those states. The recent moves by Casey's might be an effort to take advantage of those hot areas.
Source: GlobeSt/ALM