Casey’s General Stores is set to significantly expand its reach with the acquisition of Fikes Wholesale Inc., the parent company of CEFCO Convenience Stores. The all-cash deal, valued at $1.145 billion, will bring nearly 200 additional stores under the Casey’s umbrella.
Fikes Wholesale Inc. and CEFCO Convenience Stores began as a single “filling station” in Cameron, Texas, in 1952, and has grown to be an operator with stores in multiple states. Casey’s acquisition of Fikes will include 198 retail stores and a dealer network. The proposed transaction will increase Casey’s footprint to almost 2,900 stores.
The acquisition will bolster Casey’s presence in Texas, where it will add 148 stores. The company also will expand into new markets, including Alabama, Florida and Mississippi, with a total of 50 stores in these southern states. In addition to the retail stores and dealer locations, the transaction includes a fuel terminal and a commissary to support the Texas locations.
[RELATED: Casey’s Appoints Spanos To Board Of Directors]
“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 Ankeny, Iowa-based Casey’s.
Raymond Smith, president of Fikes and CEFCO Convenience Stores, expressed optimism about the deal.
“The acquisition by Casey’s, especially given its reputation and shared values, is an exciting development for Fikes and our employees,” Smith said. “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. We believe Casey’s will be an excellent steward of the CEFCO experience that our loyal customers have come to expect.”
The transaction is expected to close in the fourth quarter of 2024, subject to customary closing conditions and regulatory approval.
