Casey’s General Stores Inc., the nation’s third-largest convenience store chain, has agreed to acquire 22 Lone Star Food Stores in the Sherman, Texas, area from W. Douglass Distributing Ltd. and its affiliates for an undisclosed price, according to an announcement Tuesday from NRC Realty & Capital Advisors.
The sale, which is expected to close by the end of the month, marks the company’s entrance to the large Texas market. Casey’s operates more than 2,500 stores in 16 states, primarily in the Midwest, according to its website.
As a fuel marketer, the company ranks 15th in U.S. store brand market share based on fleet transactions at 1.79% and 13th by visit count at 2.49%, according to OPIS MarketSharePro. In the Midwest, Casey’s ranks first based on fleet transactions at 16.31% and in visit counts at 15.02%, OPIS figures show.
“The Lone Star convenience stores are high-quality stores located on great corners in fantastic markets. They will also serve as a springboard into the great state of Texas for Casey’s, while still located within our self-distribution network,” Darren Rebelez, Casey’s president and chief executive officer, said in the news release. He added that all Lone Star employees have been offered jobs.
At its Investor Day presentation earlier this year, Casey’s said it could expand beyond its footprint and remain within range of its distribution centers. Casey’s, which has a dedicated acquisitions team, also said it intended to accelerate new-store construction and acquisitions.
The retailer finished the first quarter of its fiscal 2024 on July 31. It plans to add more than 350 stores through construction and acquisitions by fiscal year 2026. Announcing fiscal Q1 results, Casey’s said it was updating its forecast to add at least 150 stores in fiscal year 2024 because of pending transactions.
The company in its presentation to investors also said it aims to deliver EBITDA growth of 8-10% by fiscal 2026, with half of that coming from “accelerated” mergers and acquisitions.
Douglass announced the sale of its wholesale and commercial fuel business to Offen Petroleum on Oct. 31.
The family-run company was founded in 1947 as Humble Oil and was purchased by Bill Douglass in 1981 when he acquired the Exxon consignee in Sherman.
Douglass has played an active role in the convenience industry, serving as chairman of the National Association of Convenience Stores (NACS) in 2004-2005.
This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.
–Reporting by Donna Harris, [email protected]; Editing by Jeff Barber, [email protected]
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