Casey’s to Acquire Fikes Wholesale, Owner of CEFCO C-Stores
Casey’s General Stores, Inc., a leading convenience store chains in the United States, has reached an agreement to acquire Fikes Wholesale, Inc., owner of CEFCO Convenience Stores, in an all-cash transaction for $1.145 billion. The purchase price includes tax benefits valued at approximately $165 million for a net after-tax purchase price of $980 million.
Fikes Wholesale, Inc. and CEFCO Convenience Stores began as a single “filling station” in Cameron, Texas, in 1952 and has grown to be a respected operator with stores in multiple states. Casey’s acquisition of Fikes will include 198 retail stores and a dealer network. The proposed transaction will increase Casey’s footprint to nearly 2,900 stores. The acquisition will bring 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. In addition to the retail stores and dealer locations, the transaction includes a fuel terminal and a commissary to support the Texas stores.
“During our Investor Day presentation in June of 2023, we outlined our business strategy to achieve top-quintile EBITDA growth. One of the core pillars of the plan is to grow the number of units,” said Darren Rebelez, board chair, president and CEO of Casey’s. “This acquisition will allow Casey’s to accelerate our unit growth plan with high-quality assets that, along with our recent 22 store acquisition in northern Texas, will provide an expanded presence in Texas and allow us to continue to expand in the state and region.”
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. 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.”
Rebelez added, “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. 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.”
The company plans to finance the transaction through balance sheet cash and bank financing. The net investment of $980 million represents an approximate multiple of 11 times CEFCO’s pro forma adjusted 2023 EBITDA. The company expects to achieve approximately $45 million in annual run-rate synergies upon the completion of kitchen installations in the acquired stores.
The transaction is anticipated to close during the fourth quarter of calendar year 2024, subject to customary closing conditions and regulatory approval. Casey’s was advised by BMO Capital Markets Corp. as financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison LLP as legal counsel, and Cleary Gottlieb Steen & Hamilton as antitrust legal counsel. Fikes was advised by BofA Securities as financial advisor and Bourland, Wall & Wenzel, P.C. as legal counsel.
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Legacy Food Group Hires Laurie Bergman as CFO
Legacy Food Group has hired Laurie Bergman, a highly experienced financial executive, as chief financial officer.
With a distinguished career spanning over two decades, Bergman has a proven track record of success in both private equity-backed and public companies, with significant accomplishments in mergers and acquisitions, corporate finance and financial operations.
In her previous roles as CFO of Liquid Environmental Solutions, a leading provider of turnkey solutions for non-hazardous liquid waste management, as well as her many leadership roles at UGI Corporation, a fortune 500 energy marketer, Bergman oversaw finance-related activities, including growth strategy, corporate financing, and managing the relationship with the private equity sponsor and corporate boards. Both LES and UGI successfully integrated numerous acquisitions, many of which were family-owned regional businesses.
“I am delighted to join this innovative platform, which is built on the foundation of successful, long-standing operators. Their expertise and commitment to excellence are the backbone of our business. I am excited about the opportunity to contribute to our growth and success in a dynamic and important industry.”
“We are thrilled to welcome Laurie as our new chief financial officer,” said Steve Push, CEO of LFG. “Laurie has a tremendous background in finance, strategic growth, and value creation. She understands the foodservice industry with her strong prior experience, and her proven track record in mergers and acquisitions, finance, and strategic planning make her an invaluable addition to our leadership team.”
Bergman holds a master of business administration and a bachelor of business administration from Temple University. She is a certified public accountant and a certified management accountant. Additionally, she serves on the boards of Arq Inc. and QNB Corporation, bringing her expertise to audit and strategic planning committees.
Bergman’s hire reinforces Legacy Food Group’s commitment to investing in a world class leadership ream, and to driving growth and operational excellence for its divisions through strong financial leadership. Her experience in M & A, corporate financing, and strategic initiatives will be crucial as LFG continues to expand its footprint to new markets and acquire new divisions.
Legacy Food Group is a holding company created to acquire high-quality regional independent distributors that will become owned operating divisions. By knitting together multiple distributors, Legacy Food Group will achieve macro-scale with micro-market nimbleness, preserving the differences that work for independents while achieving synergies that can greatly benefit members.
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Stop & Shop to Close 32 Stores as Part of Growth Plan
Stop & Shop announced the next steps in its plans to position the company for growth. In addition to continuing to make investments in price and the customer experience as part of its growth strategy in its markets, Stop & Shop will close 32 underperforming stores by year-end. Following the closures, Stop & Shop will continue to have a strong presence across its five-state footprint with more than 350 stores. Stop & Shop associates at impacted locations will be offered other opportunities within the company.
“Stop & Shop is proud of the deep roots and community ties we have developed as a neighborhood grocer of more than 100 years, and we remain committed to nourishing our associates, customers and communities,” said Gordon Reid, president. “As we announced in May, Stop & Shop has evaluated its overall store portfolio and made the difficult decision to close underperforming stores to create a healthy base for the future growth of our brand.”
The 32 impacted store locations, which are anticipated to close on or before Nov. 2, 2024, include:
Connecticut
- 100 Division St., Ansonia
- 211 High St., Torrington (931 Torringford St., Torrington will remain open)
- 1937 West Main St., Stamford (2200 Bedford St., Stamford will remain open)
- 855 Bridgeport Ave., Milford (1360 East Town Road, Milford will remain open)
- 72 Newtown Road, Danbury (44 Lake Avenue Ext., Danbury will remain open)
Massachusetts
- 932 North Montello St., Brockton
- 36 New State Highway, Raynham
- 341 Plymouth St., Halifax
- 539-571 Boston Turnpike, Shrewsbury
- 165 Needham St., Newton (bfresh Market)
- 415 Cooley St., Springfield (1600 Boston Rd. and 1277 Liberty St., Springfield will remain open)
- 545 Lincoln St. Worcester (940 West Boylston St. and 949 Grafton St., Worcester will remain open)
- 24 Mattakeesett St., Pembroke (125 Church St., Pembroke will remain open)
New Jersey
- 1083 Inman Ave., Edison
- 1049 US Highway 1 South, Edison
- 4861 US Highway 9, Howell
- 1278 US Highway 22, Phillipsburg
- 581 Stelton Rd., Piscataway
- 625 Paterson Ave., Carlstadt
- 1221 State Route 27, Franklin Township
- 130 Skyline Dr., Ringwood
- 505 Richmond Ave, Point Pleasant Beach
- 2275 West County Line Rd., Jackson
New York
- 2965 Cropsey Ave., Brooklyn
- 130 Wheatley Plaza, Greenvale
- 7 Samsondale Plaza, West Haverstraw
- 294 Middle Country Road, Coram
- 240 East Sanford Blvd., Mt. Vernon
- 132 Fulton Ave., Hempstead
- 2525 Hempstead Turnpike, East Meadow
Rhode Island
- 11 Commerce Way, Johnston
- 176 Pittman St., Providence (Eastside Marketplace)
“Our associates are a strong community dedicated to growing and working together, and all of our store associates will continue to have a place in the Stop & Shop family as we look forward to serving customers at other nearby locations,” added Reid.
Stop & Shop will communicate specific store closing dates to local customers well in advance of any store closures. Stop & Shop remains committed to serving its communities through other store locations, online shopping and home delivery services.
“Stop & Shop is focused on growing through large, multi-year price investments and a stronger customer value proposition, both in-store and online. This means we’ll be focused on delivering lower everyday prices, as well as even more savings for our customers through strong promotions,” added Reid. “Since 2018, we have completed more than 190 store remodels, with the customer shopping experience in mind. These stores are outperforming other Stop & Shop stores that haven’t been remodeled. We’re taking these learnings and implementing them at other stores as we build upon our strong foundation, similar to our new Boston flagship location, opened last month in the Allston Yards development. We look forward to continuing to serve and care for our communities and to grow Stop & Shop as a local brand for many years to come.”
After the store closures are complete, Stop & Shop will operate more than 350 stores spanning five states, including 81 stores in Connecticut, 115 in Massachusetts, 47 in New Jersey, 91 in New York and 25 in Rhode Island.
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