US-based Casey’s General Stores has signed an agreement to acquire Bucky’s Convenience Stores owner Buchanan Energy in an all-cash transaction for $580m.
Founded in 1980, the stores mainly operate in Illinois and Nebraska in the US.
As part of the deal, the company will buy 94 retail stores and 79 dealer locations. It also includes several real estate parcels for building new stores in the future.
The expansion will increase Casey’s portfolio to more than 2,300 stores.
Additionally, the deal includes a dealer network of stores where the company will manage fuel supply agreements to these stores.
Casey’s president and chief executive officer Darren Rebelez said: “In January of this year, we outlined our business strategy to achieve top-quintile EBITDA growth and deliver on our purpose ‘to make life better for communities and guests every day’.
“We’ve been hard at work, executing on our strategic vision to reinvent the guest experience, creating efficiencies to improve the shape of our business and to fund future growth, and accelerating our new store builds and acquisitions.
“Adding Bucky’s to Casey’s family is aligned with our strategy.”
The company will finance the deal through a combination of cash on hand, revolver capacity, and bank financing.
The deal is dependent on fulfiling customary closing condition and a receipt of regulatory approval. It is expected to conclude by the end of this year.
Rebelez added: “We anticipate that the acquisition will create compelling value for Casey’s shareholders in the near and long-term, and it will quickly be accretive to Casey’s EBITDA and earnings per share.
“This is an exciting time for Casey’s, and we look forward to welcoming the Bucky’s team.”