Ankeny, Iowa-based Casey’s General Stores said Wednesday it has signed an agreement to purchase 24 Stop-n-Go locations, with 20 in North Dakota and four in Minnesota.
Casey’s President and CEO Robert Myers said he hopes the acquisition is a “springboard” to opening more Casey’s stores in those areas.
“We are excited about the opportunity to acquire the Stop-n-Go chain as they are a well-managed and established group of stores in a relatively new market area for Casey’s,” he said.
Casey’s had 1,749 stores in 14 states at the end of its 2013 fiscal year, including 495 in Iowa and 125 in Nebraska. Its goal for fiscal 2014 is to build or acquire 70 to 105 stores and replace 20 existing locations.
Myers said the acquisition will boost earnings as Casey’s realizes operating efficiencies and integrates its prepared food operations into the new stores. Prepared food and fountain sales are a highly profitable part of the Casey’s business. The company in 2013 reported $111 million net income on $7.25 billion in revenue.
The acquisition is subject to regulatory approvals, is expected to close in May and will be funded by a combination of existing cash and operating cash flow, Casey’s said.