- Casey’s General Stores, Inc. (CASY) is acquiring Fikes Wholesale, Inc. for $1.15B, significantly enhancing its footprint in the Sunbelt.
- The acquisition includes 198 stores, boosting Casey’s total store count to nearly 2.9K and providing a robust dealer network.
- This strategic move aligns with Casey’s growth plan and will boost its presence in Texas, Mississippi, Florida, and Alabama.
Casey’s General Stores, Inc. is set to acquire Fikes Wholesale, Inc. for around $1.15B, a significant expansion into the Sunbelt, as reported in Globest.
By The Numbers
The acquisition will add 198 stores to Casey’s portfolio, bringing its total to almost 2.9K locations. Most stores in the deal are strategically located in the Sunbelt, with 148 in Texas and the remaining 50 across Mississippi, Florida, and Alabama.
The deal not only increases Casey’s physical store count but also includes valuable infrastructure like fuel terminals and commissaries, particularly in Texas. Fikes Wholesale owns the CEFCO Convenience Stores brand, which will now be under Casey’s umbrella.
High Expectations
“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 Casey’s.
The acquisition is expected to boost Casey’s EBITDA in the current fiscal year, creating immediate and long-term value for shareholders. Rebelez emphasized that Fikes is a well-respected company in the sector, and their integration into Casey’s is anticipated to strengthen operational synergies.
Recent Activity
From January 2022 to April 2024, Casey’s has been actively expanding its portfolio, adding 178 stores, including the recent acquisition of 22 Lone Star Food Stores in Texas. Meanwhile, the Fikes deal is expected to close in Q4.
The Sunbelt markets have seen a surge in growth due to consumer and business migrations, making them a hotspot for CRE investments. Casey’s strategic moves in these regions are aimed at capitalizing on the booming market conditions.
Why It Matters
Casey’s General Stores’ acquisition of Fikes Wholesale is a significant step in expanding its footprint in the Sunbelt region, particularly in Texas.
This strategic move aligns with the company’s growth plans and is expected to provide substantial financial benefits, reinforcing Casey’s position in the competitive convenience store market.
