Casey's General Stores is expanding its presence in the South with the acquisition of Fikes Wholesale Inc., the parent company of CEFCO Convenience Stores, in a $1.145 billion transaction that will bring 198 stores across Texas, Alabama, Mississippi, and Florida into Casey's fold. The deal, which was announced last Friday, represents a significant step for the Iowa-based retailer into new Southern markets, with nearly 150 of the acquired stores located in Texas alone. According to an Austin American Statesman report, this acquisition will boost Casey's store count in Texas to 170 and increase its national footprint to approximately 2,900 locations.
Casey's CEO Darren Rebelez spoke to investors recently about the company's southern strategy, stating, "This acquisition will quickly expand Casey’s presence in Texas, a very attractive market for Casey's," an ambition echoed in a C-Store Dive interview where he mentioned that Texas has been "a highly strategic state for Casey’s since the 22-store Lone Star acquisition last fall, and adding CEFCO stores will give us the scale to continue to grow both organically and via M&A throughout Texas and South."
CEFCO, known for its focus on food service, fits well into Casey’s existing business model, which favors food-focused, large-format store layouts. Peter Rasmussen, founder of Convenience and Energy Advisors, described the acquisition as a "plug-and-play" scenario that aligns seamlessly with Casey's growth plans. He emphasized the strategic nature of Casey's southern expansion in an area where population growth is robust, particularly in states like Texas and Florida. "When you look at where a lot of the big [c-store] players are building right now, it’s in that Southern belt," Rasmussen explained, highlighting the demographic trends that make these markets especially appealing.
In addition to the expansion of their retail locations, the agreement also includes CEFCO's fuel terminal, further establishing Casey’s infrastructure in the region. The current Fikes and CEFCO president, Raymond Smith, expressed confidence in the transition, stating that Casey's is an excellent steward of the CEFCO experience that customers have come to expect. "The acquisition by Casey’s, especially given its reputation and shared values, is an exciting development for Fikes and our employees," Smith told the Austin American Statesman. With the acquisition expected to close by the end of 2024, Casey's is set to take a more prominent position within the convenience store landscape of the southern United States.
