C-Store chain Casey's expands further in Midwest
Convenience store chain Casey’s General Stores Inc. will expand its presence in the Midwest after signing an asset purchase agreement to acquire up to 44 Kabredlo’s locations, according to the company
More specifically, this includes 22 stores in Nebraska, 21 in Kansas and one in Oklahoma, which will all be converted to Casey’s General Stores in the coming months.
For the year ending June 30th, these locations generated annual revenue of about $52 million and sold about 36 million gallons of fuel.
Ankeny, Iowa-based Casey's is a chain of convenience stores in the Midwestern United States, mostly within Iowa, Missouri, South Dakota, Illinois, Kansas and Nebraska. The company has more than 1,500 locations which offer gasoline and breakfast and lunch items like biscuit sandwiches, cheeseburgers and pizza.
The transaction, which is expected to close by the end of December, is being funded by existing cash on hand, and includes Casey's
first entry into the state of Oklahoma.
“The acquisition of the Kabredlo's locations is an excellent fit to our existing store base and will add to our presence in Nebraska and Kansas as well as allow us to penetrate a new state,” President and Chief Executive Officer Robert Myers said in a company release. “We are excited about this opportunity because Kabredlo's is a very well established and managed chain in our market area.”
He continued that the convenience store chain expects the acquisition to be accretive in the first year of operation, and will provide future earnings as Casey’s makes operations more efficient and integrates its prepared food program.
In a recent interview with WinmoEdge
, Chief Financial Officer Bill Walljasper said that the company is also opening new stores in Arkansas’s rural northern communities towards the latter end of fiscal 2011.
He added that because about 50 percent of Casey’s stores are in small towns with populations of less than 3,500, its promotional efforts rely heavily on neighborhood involvement and grassroots initiatives, though radio and television are used in larger markets
In October, Casey’s also acquired six new convenience stores in Iowa that operate under the Short Stop banner, and up to 19 On the Way locations located throughout Illinois, which is scheduled to close during the end of this week.
A month earlier, the company reported positive first quarter earnings where same store gasoline; grocery and other merchandise; and prepared food and fountain drink sales increased by 1.5, 2 and 2.4 percent respectively.
“The solid first quarter results demonstrate that Casey’s continues to execute well on our strategic plan,” Myers said in a prepared statement. “In addition to rolling out our in-store redesign program, we are expanding Casey’s footprint in the Midwest through acquisitions and construction of new stores. Our substantial progress to date, coupled with our robust acquisition pipeline, has us ahead of schedule in achieving our fiscal 2011 goal of increasing the total number of Casey’s stores by 4 to 6 percent."
According to The List database, Casey’s contracts Maple Grove, Minn.-based AllOver Media for its out-of-home advertising.
The Nielsen Company reported that Casey’s spent $1 million on measured media in 2009. About $990,000 went towards spot television ads, while most of the remaining funds went towards spot radio ads.