In November 2023, Midwestern retail company Casey’s General Stores announced that it would expand into Texas by converting 22 Lone Star Food Store facilities.
At the time, the relocation looked to be only the beginning for this rapidly expanding Midwestern company trying to replace Buc-ee’s as the area’s most recognizable roadside stop.
“[The stores] will also serve as a springboard into the great state of Texas for Casey’s, while still being located within our self-distribution network,” stated Casey’s CEO Darren Rebelez in November.
Casey’s General Stores to add 148 Texas stores with $1.1 billion deal
Talk about a springboard. Ankeny, Iowa-based Casey’s stated on Friday that it had paid $1.145 billion for Fikes Wholesale Inc., the Temple-based company that owns CEFCO Convenience Stores.
In the purchase, 198 CEFCO shops, including 148 in Texas, will become Casey’s outlets. According to Casey’s statement, many of the businesses are in little communities along the triangle that connects Dallas, Houston, and San Antonio.
“This acquisition will quickly expand Casey’s presence in Texas, which is a very attractive market for Casey’s,” Rebelez said during an investor conference call. “In addition, we’ll be able to expand our footprint further into the South, as well,”
The purchase, which is slated to finalize in the fourth quarter of 2024, would also expand Casey’s into Alabama, Florida, and Mississippi.
According to Restaurant Business Online, Casey’s will also get a gasoline dock and commissary to service its 148 new Texas outlets, in addition to the 22 it now has.
“The acquisition by Casey’s, especially given its reputation and shared values, is an exciting development for Fikes and our employees,” said Raymond Smith, Fikes and CEFCO president.
“I am happy that the CEFCO stores will join a top convenience retailer that will reinvest in the stores and eventually bring Casey’s pizza to many of our customers as well as provide professional opportunities for our employees.”
Rebelez said in his call that Casey’s would modify the CEFCO facilities to serve Casey’s culinary operations, which specialize in full pizza pies, including morning pizza.
The firm also advertises branded consumables such as potato chips, beef jerky, toilet paper, Kleenex, batteries, and cleaning supplies.
The transaction will increase Casey’s presence to around 2,900 shops, including 170 in Texas. Buc-ee’s, the ever-popular, fun-sized retail chain that offers petrol stations, branded goods and groceries, and competitive pay, has just 50 sites, 35 of which are in Texas.