Casey’s General Stores Inc. has made headlines with its recent acquisition of Fikes Wholesale, the owner of CEFCO convenience stores, closing the deal on November 1. This strategic acquisition adds 198 new convenience stores to Casey’s portfolio, making it the most significant expansion in the company’s history. As a result, Casey’s now boasts approximately 2,900 locations across 17 states, further solidifying its presence in the competitive landscape of the convenience store industry.
The deal is particularly notable for its focus on the Texas market, where Casey’s has acquired 148 convenience stores. This region is critical for the brand, which is keen on tapping into the high-volume traffic that characterizes many Texas locations. Alongside the Texas stores, the acquisition includes an additional 50 outlets spread across Alabama, Florida, and Mississippi, enhancing Casey’s footprint in the southern U.S.
Darren Rebelez, board chair, president, and CEO of Casey’s, stated, “This acquisition is the largest in Casey’s history and in line with the strategic plan laid out at the June 2023 Investor Day. We are thrilled to complete this transaction, welcome Fikes to the Casey’s team, and look forward to bringing Casey’s pizza to these high-volume stores.” The inclusion of Casey’s beloved pizza offerings in these new locations is anticipated to significantly attract customers, adding a competitive edge to the stores.
Originally announced in July, the acquisition was valued at $1.145 billion and was completed in an all-cash transaction. Not only does this deal expand Casey’s retail presence, but it also provides valuable assets including a dealer network, a fuel terminal, and a commissary to support the Texas convenience stores. According to estimates, the purchase price includes tax benefits valued at approximately $165 million, lowering the net after-tax purchase price to around $980 million.
Fikes Wholesale has a long history, originating as a single filling station in Cameron, Texas, back in 1952. This historical context highlights that Fikes is not just a chain of stores; it’s embedded in the local communities it serves. Raymond Smith, president of Fikes and CEFCO, expressed excitement about the future under Casey’s leadership, indicating that the acquisition aligns with a shared commitment to customer service and community engagement. He remarked, “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.”
Casey’s has established itself as the third-largest convenience store chain in the United States and also ranks as the fifth-largest pizza retailer. Its strategy focuses not just on expanding store count but also on enhancing the quality and range of services offered. For example, introducing Casey’s pizza to CEFCO stores aligns with consumer trends favoring convenience and quality food options.
This acquisition underscores a growing trend in the retail market where established players seek to expand their influence through strategic mergers and acquisitions. As companies like Casey’s look to enhance their market share, the integration of comprehensive offerings—such as food, fuel, and convenience—becomes essential in staying competitive.
Looking ahead, the successful integration of Fikes and Casey’s operations will be crucial. Casey’s will need to leverage its operational expertise to maximize the potential of the newly acquired stores while ensuring the retention of loyal customers who have come to expect a certain level of service and product quality.
In conclusion, Casey’s General Stores’ acquisition of Fikes Wholesale marks a significant milestone in the convenience store industry, reflecting not only the brand’s growth aspirations but also its commitment to customer satisfaction and community integration. As the landscape of retail continues to evolve, Casey’s positions itself well for sustained growth in the coming years.
