Casey’s Announces the Closing of Buchanan Energy Acquisition

Rhea-AI Summary

Casey’s General Stores, Inc. (Nasdaq: CASY) has successfully completed the acquisition of Buchanan Energy, enhancing its presence in the Midwest, particularly in Nebraska and Illinois. This significant milestone marks the largest transaction in Casey's 52-year history, aligning with their strategic goal to add 345 stores by 2023. Casey's will divest six stores as required by the Federal Trade Commission, which won't materially affect the transaction's financial impact. The acquisition expands Casey's store count to over 2,300 and aims to integrate Bucky’s successful business model.

Positive

• Acquisition enhances Casey's Midwest market presence, particularly in Nebraska and Illinois.
• Total store count increases to over 2,300, supporting growth objectives.
• Acquisition aligns with strategic plan aimed at adding 345 stores by 2023.

Negative

• Divestiture of six stores required by the Federal Trade Commission.

Casey’s General Stores, Inc. (“Casey’s” or the “Company) (Nasdaq: CASY), one of the leading convenience store chains in the United States, today announced the closing of the previously announced acquisition of Buchanan Energy, owner of Bucky’s Convenience Stores. The acquisition deepens Casey’s Midwest presence, notably in Nebraska and Illinois, and brings the company’s total owned and operated stores to over 2,300 units.

The acquisition marks the most significant transaction in Casey’s 52-year history, and is part of the implementation of its three-year strategic plan that was shared in January 2020 when the Company set a three-year goal of adding 345 stores to its chain. The Company will divest six stores as part of the consent order the Company agreed to with the Federal Trade Commission, which will not materially alter the expected financial impact of the transaction as previously disclosed.

“We are pleased to complete this transaction and welcome the Bucky’s team to the Casey’s family,” said Darren Rebelez, President and Chief Executive Officer of Casey’s. “Steve Buchanan and his team have built up an extremely successful business, and Casey’s is excited to bring our hand-made pizza program to these well located, high volume stores.

About Casey’s

Casey’s is a Fortune 500 company (NASDAQ: CASY) operating over 2,300 convenience stores. Founded more than 50 years ago, the company has grown to become the fourth-largest convenience store retailer and the fifth-largest pizza chain in the United States. Casey’s provides freshly prepared foods, quality fuel and friendly service at its locations. Guests can enjoy pizza, donuts, other assorted bakery items, and a wide selection of beverages and snacks. Learn more and order online at www.caseys.com, or in the mobile app.

Forward-looking Statements

This release contains statements that may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include any statements, with respect to the Company and the acquisition, relating to our expectations for future periods, possible or assumed future results of operations, financial conditions, liquidity and related sources or needs, business and/or integration strategies, plans and synergies, supply chain, growth opportunities, performance at our stores, and the potential effect of COVID-19.

There are a number of known and unknown risks, uncertainties, and other factors that may cause our actual results to differ materially from any future results expressed or implied by those forward-looking statements, including but not limited to integration of the acquisition, executing our strategic plan, the impact and duration of COVID-19 and related governmental actions, as well as other risks, uncertainties and factors which are described in the Company’s most recent annual report on Form 10-K and quarterly reports on Form 10-Q, as filed with the Securities and Exchange Commission and available on our website.

Any forward-looking statements contained in this release represent our current views as of the date of this release with respect to future events, and Casey’s disclaims any intention or obligation to update or revise any forward-looking statements in the release whether as a result of new information, future events, or otherwise.

Corporate information is available at this website: https://www.caseys.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210514005066/en/

FAQ

What is the significance of Casey's acquisition of Buchanan Energy?

The acquisition deepens Casey's market presence in the Midwest and is the largest transaction in its history.

How many stores does Casey's operate after the acquisition?

After the acquisition, Casey's operates over 2,300 convenience stores.

What were the terms of the acquisition regarding store divestitures?

Casey's will divest six stores as part of a consent order with the Federal Trade Commission.

How does this acquisition fit into Casey's strategic plan?

The acquisition is part of Casey's goal to add 345 stores by 2023 as outlined in their strategic plan.

What impact will the acquisition have on Casey's financials?

The company expects the financial impact of the acquisition to remain materially unchanged despite the store divestiture.