Casey’s Buys 11 MN Convenience Stores
Eleven convenience stores in Minnesota will soon change hands.
Casey's General Stores, Inc., announced Tuesday that it will acquire 11 convenience stores from Trimont-based NuWay Cooperative.
Financial terms of the deal were not disclosed.
“The decision to sell these stores did not come easily. Casey's made a fair offer to purchase our stores, and our board spent many hours debating the sale,” Kevin Jones, NuWay general manager, said in a statement. “The difficulties of growing a small chain, fierce competition from larger brands, and the opportunity to strengthen our core businesses with the proceeds of a sale all contributed to the decision by our board of directors.”
Ankeny, Iowa-based Casey's will immediately rebrand all of the acquired stores-which now operate under the NuMart name-as Casey's.
Casey's Chief Financial Officer Bill Walljasper said on Wednesday that the company owns about 1,600 stores in 10 states, and the acquisitions will boost its presence in Minnesota to about 110 stores.
The 11 newly acquired stores are located in Fairmont, Trimont, Butterfield, St. James, and Sherburn, among other towns in southern Minnesota near the Iowa border, according to Walljasper.
“We are excited about this opportunity,” Robert J. Myers, president and CEO, said in a news release. “These are well-maintained locations that fit perfectly with the company's business model of operating in smaller rural communities and further strengthens our existing market presence in southern Minnesota.”
Casey's said that it expects the purchase to be immediately accretive to its earnings. The deal, which is subject to customary closing conditions, is expected to close in the company's fourth quarter. The transfer of ownership will take effect April 30.
Casey's stock price jumped 12 cents on news of the acquisition, closing at $42.97 on Tuesday.
NuWay will continue to focus on its other lines of business, including products and services related to energy and agronomy for farms, homes, and commercial businesses.