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November 10, 2020updated 05 Nov 2021 11:35am

Casey’s agrees to acquire 94 Bucky’s Convenience Stores  

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. 

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.

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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.”

In September last year, Casey’s General Stores enhanced its shopping options by introducing a new curbside pickup offering.

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What’s missing from your IPO industry assessment?

IPO activity all but stopped in 2020, as the investment community grew wary of the effects of COVID-19 on economies. No matter how deserving a business was of flotation, momentum was halted by concerns of when a ‘new normal’ of working patterns and trade would set in. Recently, sentiment has changed. Flotations picked up again during the second half of 2021, and now in 2022 the mood is decidedly optimistic. Business leaders have their eyes on fast rebounding economies, buoyant market indices and the opportunity once again to take their businesses public. As a result, global IPOs are expected to hit back this year. With GlobalData’s new whitepaper, ‘IPOs in Consumer and Retail: 5 must-include elements for your prospectus industry report’, you can explore exactly what is needed in the essential literature. GlobalData’s focus lies in the critical areas to get right:
  • Macroeconomic and demographic environment
  • Consumer context
  • Industry environment
  • Competitive environment
  • Route to market
Interested to learn more about what to include in your IPO Industry Assessment report? Download our free whitepaper.
by GlobalData
Enter your details here to receive your free Report.