FJ Management, parent company of convenience-store chain Maverik, late last week acquired Kum & Go, which has more than 400 convenience stores in 13 states, for an undisclosed price. True to its tagline, “Adventure’s First Stop,” Salt Lake City-based Maverik has embarked on an acquisition adventure that doubles its retail portfolio and “creates a best-in-class convenience-store operator across the Midwest and Rocky Mountain regions,” the companies said in announcing the deal.
- Maverik is No. 21 and Kum & Go is No. 22 on CSP’s 2023 Top 40 update to the 2022 Top 202 ranking of convenience store chains by store count. Watch for the full 2023 Top 202 in June.
The deal “brings together two leading family-owned, customer-focused convenience retailers with nearly 160 years of combined experience serving their communities [and] enhances both companies’ distinct capabilities to create an integrated offering across a combined footprint of over 800 units across 20 states, meeting evolving needs of a broader customer base of existing and new customers,” they said in a joint statement.
Maverik, which opened its 400th store in January in Magna, Utah, operates in 11 states: Arizona, California, Colorado, Idaho, Nebraska, Nevada, New Mexico, Oregon, South Dakota, Utah, Washington and Wyoming.
Kum & Go operates stores in Arkansas, Colorado, Iowa, Minnesota, Missouri, Montana, Nebraska, North Dakota, Oklahoma, South Dakota, Wyoming and recently Utah and Michigan (with plans to expand into the Detroit market in 2024). Its first store in Idaho is slated to open sometime this year in the Boise market.
Maverik said it will maintain a “meaningful market presence” in Kum & Go’s home market of Des Moines, Iowa, and that the merger “creates a platform for future innovation and growth.” The company did not say whether it would rebrand the acquired stores or operate them under the existing brand.
Krause Group, which owns U.S. and Italian soccer teams, scored a goal of sorts with its acquisition by Maverik.
The Krause family, the owner of convenience-store chain Kum & Go, had been exploring options, including the goal of selling the company, which could be valued at close to $2 billion, according to a February Reuters report. It was also exploring a refinancing, real estate leasebacks or other forms of recapitalization as potential alternatives, the report said.
The companies did not disclose the financial terms of the transaction, which is subject to customary closing provisions. Both companies will continue to operate separately until the transaction closes “sometime over the next 3-6 months,” Maverik said in a Facebook post.
BofA Securities and BMO Capital Markets Corp. served as financial advisors to FJ Management. Kirkland & Ellis LLP served as FJ Management’s legal advisor. J.P. Morgan Securities LLC served as financial advisor to Krause Group. Vedder Price served as Krause Group’s legal advisor.
FJ Management Inc. is an Ogden, Utah-based private holding company that manages a diverse portfolio of petroleum, healthcare and hospitality related assets. Founded in 1968 by O. Jay Call, the company continues to grow and prosper under the leadership and support of many. Crystal Maggelet took over as CEO in 2009, and today FJ Management ranks among the largest privately held companies in the United States.
Krause Group is the parent company to a diverse set of businesses that include convenience retail, logistics, Italian wineries and hospitality, real estate, agriculture and soccer clubs.
Established in Hampton, Iowa, in 1959, Kum & Go is a fourth-generation, family-owned convenience-store chain.
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