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ANKENY, Iowa -- Convenience store chain Casey's General Stores Inc. signed a letter of intent to purchase up to 58 stores from Lincoln, Neb.-based Gas 'N Shop Inc.
All of the locations, which include 54 in Nebraska, three in Kansas and one in Iowa, will be converted to the Casey's General Stores banner following the completion of the acquisition. For the year ended Dec. 31, 2004, the 58 stores generated approximately $108 million in gross sales revenue.
“The acquisition of the Gas 'N Shop locations is an excellent fit to our existing store base and will nearly double our presence in Nebraska,” said Ron Lamb, Casey's chairman and CEO. “We are excited about this opportunity because Gas 'N Shop is a very established and well-managed chain, with over 30 years of operations in our market area.”
Lamb continued, “We expect this acquisition to be accretive in the first year of operation and to provide further earnings enhancements as we realize operating efficiencies and complete the addition of our prepared food operations.”
The completion of the acquisition is subject to certain regulatory approvals and other closing conditions. The transaction is scheduled to close during the company's second fiscal quarter and will be funded by a combination of existing cash and operating cash flow, the company said.