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All the stores are located in Iowa, home base for both retailers, and currently operate under the Kum & Go banner. The stores will be rebranded Casey's immediately upon completion of the sale, which is slated for July.
Kum & Go plans to reinvest the proceeds from the sale in the company's remaining stores, which number more than 400, according to Kyle J. Krause, owner, president and CEO of Kum & Go. The funds will also be used to drive the company's long-term business and growth strategies, he said.
"I extend my sincere appreciation to our associates and loyal customers in these communities for the important role that they have played in Kum & Go's history and overall success of these stores," he added.
On its end, Casey's expects the acquisition to be immediately accretive to earnings in the stores’ first full year of operation. The acquisition is subject to certain regulatory approvals and other customary closing conditions. The deal will be funded by existing cash and cash flow.
"These stores are predominantly in rural Iowa locations," said Casey's President and CEO Robert J. Myers. "These types of communities have proven to be an excellent fit for our business model, and we are very excited to implement our proprietary prepared food program."