Casey’s buying 198 stores in South for $1.1 billion

Casey’s General Stores has announced it will acquire 198 CEFCO convenience stores in four Southern states for $1.145 billion.

The transaction with Fikes Wholesale will increase Casey’s footprint to nearly 2,900 stores. Its share price has risen about 35 percent this year.

The acquisition will mean an 148 additional Casey’s stores in Texas, a “highly strategic market” for the Ankeny-based company, plus 50 CEFCO stores in Alabama, Florida and Mississippi, according to a news release.

The all-cash transaction includes a fuel terminal and a commissary to support the Texas stores. The purchase price includes tax benefits for a net after-tax purchase price of $980 million, Casey’s said in its news release.

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Casey’s, founded in Boone in 1968, is the third-largest convenience store retailer and the fifth-largest pizza chain in the United States.

Darren Rebelez, Casey’s president, chief executive officer and board chair, said the company’s business strategy includes growing “the number of units.”

The Fikes’ acquisition, he said, “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,” he said.

“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.”

FIkes Wholesale, owner of the CEFCO convenience stores, began as a single filling station in Cameron, Texas, in 1952.

Raymond Smith, president of Fikes and CEFCO, said in a statement he welcomed the acquisition by a company that shares his company’s values and also said he was happy the deal will “eventually bring Casey’s pizza to many of our customers.”

The transaction is anticipated to close during the last quarter of this year, subject to regulatory approval.