Casey’s has announced the closing of its previously announced acquisition of Fikes Wholesale, owner of CEFCO Convenience Stores. The acquisition brings 148 additional stores to Texas, which is a highly strategic market for Casey’s, as well as 50 stores in the southern states of Alabama, Florida and Mississippi.

This acquisition brings Casey’s total store count to approximately 2,900 stores.

“This acquisition is the largest in Casey’s history and in line with the strategic plan laid out at the June 2023 Investor Day,” said Darren Rebelez, board chair, president and CEO of Casey’s. “We are thrilled to complete this transaction, welcome Fikes to the Casey’s team, and look forward to bringing Casey’s pizza to these high-volume stores.”

Raymond Smith, President of Fikes and CEFCO, highlighted the strategic alignment between the two convenience organizations.

“The acquisition by Casey’s, especially given its reputation and shared values, is an exciting development for Fikes and our employees,” he said. “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.”

The deal is valued at $1.145 billion, which the company financed through balance sheet cash and bank financing.

Casey’s expects to achieve approximately $45 million in annual run-rate synergies upon the completion of kitchen installations in the acquired stores.

“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,” continued Rebelez. “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.”