Casey’s Accelerates Growth Plans With Acquisition of Nearly 200 Stores; Shares Still Look Pricey

Narrow-moat Casey’s announced the acquisition of Fikes Wholesale on July 26 for an after-tax price of $980 million. The acquisition is expected to be financed via a combination of existing cash and new debt and adds 198 convenience stores to Casey’s existing footprint (bringing its total to about 2,900 locations). The deal expands Casey’s presence outside of its core Midwestern market as about three quarters of Fikes’ stores are in Texas, with the remaining located in Florida, Mississippi, and Alabama. The deal also includes a small wholesale fuel business.