Mergers & Acquisitions

9 Kum & Go C-Stores Change Hands

Investment company adds to its industry portfolio in Iowa

DALLAS -- U.S. Assets Inc. acquired nine convenience stores Oct. 10 from Kum & Go LC in Iowa for an undisclosed price.

One of the c-stores is located in Red Oak, and two each are located in Council Bluffs, Sioux City, Sioux Center and Missouri Valley, Narendra "Matt" Manney, director of Matt Business Services Inc., told CSP Daily News. Chicago-based Matt Business Services advised U.S. Assets on this transaction.

U.S. Assets, based in Dallas, also is an investor in the White Oak Station chain of approximately 50 c-stores in Arkansas, Kansas, Texas and Florida. White Oak is owned by Petromark Inc., Harrison, Ark.

West Des Moines, Iowa-based Kum & Go confirmed the deal.

"Kum & Go’s strategy is to offer consistency among all stores, including on-site kitchens, fresh food and a variety of fuels--mostly in larger, urban markets." company spokesperson Kristie Bell told CSP Daily News. "While these stores have been profitable, they don’t fit into the company’s long-term plans for growth. The stores are expected to transition to the White Oak Station brand by November 10."

With about 400 c-stores, Kum & Go ranked No. 21 on CSP's 2017 Top 202 list of the largest c-store chains in the United States.

U.S. Assets, formed in 2014, invests in and assists new and existing companies to grow. It seeks partnerships with owners and management through fresh capital, increased liquidity or monetization of existing assets. The company typically invests in the lower and middle market with companies generating $1 million to $10 million in earnings before interest, taxes, depreciation and amortization (EBITDA). It considers a variety of businesses for investment with a preference for “old-world” industries with reliable cash flows. Past investments include retail, light manufacturing and health care services. Other industries it is considering include commercial insurance, wholesale food production and logistics.


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