TYLER, Texas (KETK) -- Casey's, a chain of convenience stores in the South and Midwest, announced that it has agreed to acquire Fikes Wholesale, the owner of the CEFCO chain.
According to a press release from Casey's, the $1.145 billion transaction will mean Casey's acquires all 198 CEFCO convenience stores across Texas, Alabama, Mississippi and Florida.
Once the deal closes toward the end of 2024, Casey's will own nearly 2,900 stores. The chain is known for the pizza they serve at their many locations. Their wide footprint has reportedly made them the fifth largest pizza chain in the country.
"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,” said Raymond Smith, president of Fikes Wholesale and CEFCO.
The reinvesting that Smith mentioned comes to CEFCO stores in the form of a $980 million net investment into the stores. According to Casey's, that investments is worth around 11 times as much as CEFCO's pro forma earnings before interest, taxes, depreciation and amortization (EBITDA) for 2023.
“We expect the acquisition will create value for Casey’s shareholders in the near- and long-term and will be accretive to Casey’s EBITDA in the current fiscal year. 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. We could not be more excited about the future of our two organizations,” said Darren Rebelez, board chair, president and CEO of Casey’s.
To learn more, visit Casey's online.
