Casey's Reaches $220M Deal to Acquire 40 Pilot C-stores
The acquisition will extend the Midwest retailer's presence in Tennessee and Kentucky.
ANKENY, Iowa — Casey's General Stores Inc. is buying 40 Pilot convenience stores from Pilot Corp. in an all-cash transaction for $220 million.
The 40 Pilot stores will extend Casey's presence in Tennessee and Kentucky with well-established locations primarily in the attractive Knoxville, Tenn., market.
"These stores have a track record of strong performance and are high quality assets that will be a great fit for Casey's fresh food program, especially our handmade pizza," said Darren Rebelez, Casey's president and CEO. "We look forward to carrying forward these Haslam family legacy stores and welcoming their team into the Casey's family."
Casey's will fund the transaction with a combination of cash on hand and bank financing. It is subject to customary closing conditions and regulatory approvals, including Hart-Scott-Rodino clearance.
"Casey's is a great convenience store chain that shares similar values as Pilot and we couldn't be more excited for what they will bring to the community," said Pilot Co. Chairman Jimmy Haslam. "We are very thankful for the tremendous service our team members have provided and know they will be in great hands with Casey's."
Pilot's convenience stores are owned and operated independently from its travel center and energy businesses and were not included in the Berkshire Hathaway transaction. BofA Securities Inc. acted as exclusive financial advisor to Pilot Corp.
Haslam added, "The company will continue our intense focus on growing our core travel center network and energy businesses with significant investments in our people and our stores to provide the best team member and guest experience at our more than 800 locations across North America."
Ankeny-based Casey's operates more than 2,300 convenience stores.
Knoxville-based Pilot operates more than 800 retail and fueling locations. It is the third largest tanker fleet in North America, supplying more than 12 billion gallons of fuel per year. Its energy division also supplies diesel exhaust fluid, bio and renewables, and provides hauling and disposal services. Its Pilot Flying J Travel Center network includes more than 750 locations in 44 states and six Canadian provinces with more than 680 restaurants, 74,000 truck parking spaces, 5,300 deluxe showers, 6,200 diesel lanes, and offers truck maintenance and tire service through Southern Tire Mart at Pilot Flying J.