Casey’s General Stores is officially moving into the North Dakota market as it acquires 22 stores from Kum & Go.
The stores are located in Iowa (19), Missouri (2) and North Dakota (1).
“These stores are an excellent fit to our existing store base and will allow us an opportunity to operate in a new state,” said Robert Myers, President and CEO of Casey’s. “We expect this acquisition to be accretive in the first year of operation and enhance future earnings as we integrate our prepared food operations.”
Kum & Go divested the stores as part of its strategic growth plan. “Our company is committed to carefully-planned, strategic growth – that’s evidenced by the fact that we’ll open 40 new stores this year alone,” said Kyle Krause, Kum & Go president and CEO. “It’s our continued desire to consolidate and strengthen our asset base and offer a consistent brand to our customers in Kum & Go’s core markets. The sale of these properties, in addition to our new store growth, brings us one step closer to carrying out that strategy.”
The acquisition is subject to certain regulatory approvals and other customary closing conditions, including the receipt of satisfactory inspection reports related to the stores. The transaction is expected to close in November 2012.