Casey’s General Store was founded in Boone, Iowa, in 1968, and the convenience store chain soon became the hub of countless small, Midwestern towns.
These days, the company has nearly 2,900 locations, with a footprint that stretches from Montana to Florida, from Texas to Ohio, and seemingly all points between. The C-store chain fuels not just vehicles but their owners too, with breakfast pizza that has attained a cult-like following, along with a growing list of private-label products.
And America’s third-largest convenience-store chain just got bigger, as Casey’s recently acquired Fikes Wholesale – the owner of CEFCO C-stores – in an all-cash transaction for $1.15 billion. The acquisition will add 198 total Casey’s stores in the southeastern U.S., including 148 stores in Texas, a highly sought-after market. The company entered the Texas market in November 2023 after buying 22 Lone Star Food Stores.
“One of the core pillars of (Casey’s business) plan is to grow the number of units,” said the chain’s CEO, Darren Rebelez, in a statement.
“This acquisition will allow Casey’s to accelerate our unit growth plan with high-quality assets. …”
The transaction is expected to close during Q4 this year. RBC Capital Markets analyst Irene Nattel said Casey’s latest acquisition shouldn’t face substantial regulatory hurdles since the company has limited presence in the southeast, Reuters reported.
Casey’s company shares had risen about 35% so far this year as of July 26.
The Iowa-based company – which has become the fifth-largest pizza chain in the U.S. – expects to add roughly $45 million in annual revenue after completing kitchen installations in its newly acquired stores.
Now, Casey’s officials envision a future in which their chain offers customers far more than donuts and unleaded. The possibilities – pizza-by-the-slice, cheeseburgers, chicken sandwiches, and private-label potato chips – suddenly seem endless for the 56-year-old chain.
“We expect the acquisition will create value for Casey’s shareholders in the near- and long-term,” Rebelez said, adding that his Fortune 500 company “could not be more excited about the future.”
The Food Institute Podcast
In this episode of The Food Institute Podcast, IFDA President and CEO Mark S. Allen discussed the pressing challenges and innovative solutions in the foodservice distribution industry. Allen delved into topics such as labor shortages, transportation issues, technology advancements, and the importance of industry events like IFDA’s Solutions Conference.
