United Fuels Midwest has sold its multi-state portfolio of downstream energy assets, including 13 stores in Minnesota and South Dakota, in addition to its wholesale commercial fuels distribution business and petroleum transport company.
The portfolio included five travel centers and eight c-store locations, the majority of which operated under the Speedway brand as franchisee and licensee sites, according to a statement from Downstream Energy Group (DEG), which served as advisor to United Fuels throughout the acquisition process.
The sale, the statement continued, represented a “comprehensive strategic exit from retail, wholesale and logistics operations, with assets sold to multiple buyers.”
Buyers included Casey’s, Staples Oil Co. and one additional strategic buyer active in the Upper Midwest market. Details of the transaction were not disclosed.
“This transaction marks a significant milestone for United Fuels, who successfully built a diverse network of retail and commercial fuel assets across the region,” the statement noted. “The divestiture provides an efficient outcome for all stakeholders, ensuring operational continuity and seamless transitions across the retail, wholesale and transportation businesses.”
“This was a complex, multi-party transaction involving retail, wholesale and logistics components,” said Jeff Traub, partner at Downstream Energy Group. “United Fuels has built a strong organization over many years, and we were honored to represent them in achieving a successful outcome with several highly respected industry buyers.”
Casey’s Recent Growth
Casey’s picking up these additional sites comes as the chain continues its rapid growth strategy. In CStore Decisions’ October cover story, editor-in-chief Erin Del Conte sat down with Casey’s Chief Operating Officer Ena Williams to learn more about the chain’s expansion.
According to Williams, Casey’s centers its strategy on three pillars: 1.) growing stores, 2.) accelerating fresh prepared food and 3.) enhancing operational efficiency.
About half of Casey’s future growth is expected to come from new stores, not just in new geographies like Texas, Florida and Alabama, but also within the chain’s existing footprint.
The chain’s second pillar is built on a “two-prong approach” that includes new builds and acquisitions.
New-to-industry (NTI) stores are a key element in Casey’s store growth model, and in the last three fiscal years, more than 100 new Casey’s locations were introduced. Based on the chain’s strategic plan for fiscal 2024-2026, Casey’s expects to open approximately 500 stores during the three-year period through a combination of new builds and acquisitions. In fiscal 2025, Casey’s acquired 37 stores and built 35 NTI sites, in addition to the CEFCO acquisition, bringing its total new store count to 270 for the fiscal year.
“We have a lot of space within our existing footprint to grow,” Williams said. “There are plenty of small towns that would love to have a Casey’s and that we consider Casey’s Country. So that’s the first part of the growth. And we’ll do that through either acquisition or through NTI stores.”
Casey’s uses a “network planning process” that it updates twice a year to determine the ideal amount of Casey’s locations in a given area. “There’s a science around growing new stores and acquisitions,” Williams said.
The second half of Casey’s growth is expected to come from its legacy locations, where Casey’s expects to drive in-store sales and transaction counts. Center store is one such growth area, where the chain is evaluating package sizes, product mix and adjacencies, as well as where limited-time offers and foodservice line extensions might be needed.
“We’re constantly evolving and looking at ways that we can bring new and exciting items to our guests. We do a lot of this through our guest insights team. They help us understand what the guest is looking for,” she said.
