Convenience store chain Casey’s General Stores has acquired Buchanan Energy, the owner of Bucky’s Convenience Stores, for an all-cash purchase price of $580m.
Last November, Casey’s announced that it had entered an agreement to acquire Buchanan Energy.
As part of the deal, the company purchased 94 retail stores and 79 dealer locations, as well as several real estate parcels for building new stores in the future.
The purchase price also includes $80m of tax benefits for a $500m net after-tax purchase price.
Founded in 1980, Buchanan Energy and Bucky’s Convenience Stores operates convenience stores in Illinois, Iowa, Missouri, Nebraska and Texas. Both are family-owned and operated.
The acquisition is part of Casey’s three-year strategic plan to add 345 convenience stores to its portfolio, which it announced last January.
The addition will take the company’s total owned and operated stores to more than 2,300 units and will particularly strengthen its presence in Nebraska and Illinois.
The deal also includes a dealer network of stores, to which Casey’s will manage fuel supply agreements.
Casey’s president and CEO Darren Rebelez said: “We are pleased to complete this transaction and welcome the Bucky’s team to our family.
“Steve Buchanan and his team have built up an extremely successful business, and we are excited to bring our hand-made pizza programme to these well-located, high-volume stores.
Following the acquisition, Casey’s will sell six stores as part of the consent order with the Federal Trade Commission.
The divesture will not materially change the transaction’s expected financial impact.
In March, the company entered an agreement to acquire 49 sites of Canadian convenience store chain Alimentation Couche-Tard in Oklahoma, US.
The $39m all-cash transaction includes three owned properties and 46 leased properties, and is expected to be completed by 31 July.