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    Casey's Acquisition Hits the Bullseye

    Nine Bullseye convenience stores a perfect fit for chain's business model, CFO says.

    By Mehgan Belanger

    ANKENY, Iowa -- In a "tuck-in acquisition" that "fits perfectly" with its business model, Casey's General Stores Inc. signed agreements to purchase nine Bullseye-branded convenience stores in Missouri, Casey's spokesman Bill Walljasper told CSNews Online.

    Missouri is one of Casey's "top three states for store count," said Walljasper, noting the retailer operated 284 stores in the state as of the end of its first quarter 2010. "We are familiar with the communities, [the stores] are well maintained and well operated."

    The Bullseye stores, owned by PICS Marketing Inc. and Ridgerunner Properties LLC, will be rebranded to the Casey's banner as quickly as possible, although weather could play a factor, he said.

    Casey's also expects to integrate its proprietary prepared food program, including its made-from-scratch pizza and doughnuts, Walljasper said, adding some stores may see the addition of Casey's made-to-order sub sandwich program. The decision to install the program will be made on a case-by-case basis.

    The sub sandwich program, which was detailed as part of Convenience Store News' March 9, 2009 issue, offers Casey's customers their choice of various breads, meats, cheeses, condiments, etc. Six- and 12-inch subs are available in nine cold varieties, two hot selections and five wrap options -- all prepared in front of the customer.

    As reported in a CSNews Breaking News alert yesterday, the Bullseye stores are currently operated by Cox Oil Co. Inc., and Casey's expects to retain store level personnel. Under the agreements, Casey's will buy the assets and operate the locations, Walljasper explained.

    The transaction is scheduled to close the week of Dec. 14, the company stated.

    Casey's plans to grow both organically and by acquisitions throughout its nine-state operating area, which includes Iowa, Illinois, Indiana, Kansas, Minnesota, Missouri, Nebraska, South Dakota and Wisconsin, as well as in adjacent states, Walljasper told CSNews Online.

    "The entire state of Missouri is [a growth area] and all our markets are," he said. "We look to grow the company not only with new stores, but by acquisition, and this is part of that."

    Cox Oil will continue to operate nine other Bullseye locations throughout Missouri.

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    By Mehgan Belanger
    • About Mehgan Belanger

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