Yesway has announced the sale of its 29-store portfolio in Iowa and Kansas to Now & Forever for around $21 million, including payment for the value of existing inventory, the company noted in a statement.
Yesway plans to use the proceeds to strengthen its balance sheet and open new-to-market stores in its core markets.
“This transaction is fundamentally about putting our capital to work where we believe it can generate the greatest long-term value,” said Thomas N. Trkla, chairman, president and CEO of Yesway. “By monetizing our Iowa and Kansas portfolio, we are unlocking capital to invest in new-to-industry stores in faster-growing core markets where we see opportunities to achieve higher returns on invested capital. At the same time, we are sharpening our operational focus and simplifying our supply chain footprint. Together, these benefits position us to pursue more profitable growth, build on the strength of our Yesway and Allsup’s brands and deliver long-term value for our shareholders.”
“I also want to express my heartfelt thanks to all of our district and store managers, service technicians, and store associates in Iowa and Kansas for their hard work, dedication, and commitment throughout the years these stores have been part of the Yesway family,” Trkla added. “Their pride in their work, care for our customers, and dedication to their communities helped build the foundation of our company, and I am tremendously proud of all that we accomplished together.”
Now & Forever is a family-owned chain of travel centers and convenience stores located throughout Houston, Texas. Founded by brothers Zain and Shayan Farooqi, the chain operates 22 locations in the Houston area.
Network Optimization
Yesway has been strategically optimizing its store network in recent months. Its latest move took place just last week, when the company announced that it would open its first Allsup’s in Arizona, bringing the brand to its 10th state.
Yesway noted that Arizona is an important component of its broader new-store development strategy, which is currently concentrated in Arizona, Oklahoma, New Mexico and Texas. The company views Arizona as a natural extension of its existing Southwestern footprint and an especially attractive market for future growth.
“Opening our first Allsup’s store in Arizona is an exceptionally exciting moment for our company and one of the most significant milestones in Yesway’s history since we founded the company in 2015,” said Trkla at the time. “We could not be more pleased to bring Allsup’s to Arizona. We have long believed that Arizona represents an outstanding opportunity for our company, and we are delighted to finally introduce this iconic Southwestern brand to customers in the state.”
Additionally in September, Yesway opened another new Allsup’s in Odessa, Texas.
“Our continued growth across Texas is a testament to the dedication of our team members, whose commitment to operational excellence and customer service is at the heart of our success,” said Trkla in September. “We are proud to invest in Odessa and look forward to welcoming customers to this outstanding new store. Whether stopping in for an Allsup’s World Famous Burrito, picking up everyday essentials or refueling for the road ahead, our customers can count on quality products, modern facilities and the friendly, dependable service that defines our brand.”
The opening marks “an important milestone in Yesway’s history,” the company wrote in a statement at the time.
