ANKENY, Iowa — Casey’s General Stores Inc. has received a request for additional information from the Federal Trade Commission (FTC) in connection with its pending $580 million acquisition of Buchanan Energy, owner of Bucky’s Convenience Stores.
The effect of the request is to extend the anticipated closing date, which the retailer initially expected to occur by the end of 2020, it said.
“Casey’s continues to cooperate with the FTC and does not expect its review to have a material impact on the acquisition,” the Ankeny, Iowa-based company said.
Buchanan Energy and Bucky’s Convenience Stores were founded as a family-owned and operated business in 1980. The Omaha, Neb.-based company operates 56 locations in Illinois and 26 in Nebraska, as well as five in Iowa, four in Texas and three in Missouri.
Once completed, Casey’s acquisition of Buchanan Energy will include 94 retail stores and 79 dealer locations, as well as multiple parcels of real estate for future new-store construction, which will increase Casey’s footprint by 4% to more than 2,300 stores.
- Casey's is No. 4 on CSP's 2020 Top 202 ranking of c-store chains by number of company-owned retail outlets. Buchanan Energy is No. 74.
Casey’s operates more than 2,200 c-stores in 16 states. The company is the fifth-largest pizza chain in the United States.
The acquisition will expand Casey’s presence in key Midwest markets and enable the chain to bring its offerings to a broader group of consumers, it said.
Casey’s will manage fuel supply agreements to the dealer stores. This new capability will provide the company future flexibility with respect to mergers and acquisitions as well as a new income stream while leveraging its scale for fuel procurement, it said.
Meanwhile, as part of Casey’s participation in strategic communications and advisory firm ICR’s conference, the company released select third-quarter-to-date fiscal 2021 results through Jan. 8, 2021.
Quarter-to-date same-store fuel gallons are down in the low to mid-teens when compared to the same period in third-quarter fiscal 2020. Fuel margins remain higher than historical averages and are currently above 30 cents per gallon (CPG).
Inside same-store sales—defined as the combination of grocery and other merchandise and prepared food and fountain—are positive, with low single-digit growth compared to the same period in third-quarter fiscal 2020. Grocery and other merchandise same-store sales are up mid-single digits, partially offset by pressure in prepared food and fountain same-store sales, which are down mid-single digits.
Casey’s continues to experience incremental costs due to COVID-19, it said, including additional cleaning costs, higher-than-usual sick and quarantine pay, as well as incremental team member appreciation pay. As a result, quarter-to-date operating expenses vs. the prior year are up slightly more than the percentage increase experienced in second-quarter fiscal 2021, it said.