Mergers & Acquisitions

Top 202 2019: The Cost of Building, Buying and Selling

4 statistics driving the c-store M&A market, for better or for worse
the cost

CHICAGO — The dynamics of convenience-store chain growth pivot around many factors, including interest rates, fuel profitability and c-store multiples. Many of those critical factors currently favor retailers. Here’s a look at where the stats stand.

High Multiples

Three of the larger acquisitions in 2018—two from  EG Group and the BP-ArcLight deal for Thorntons—drew  high multiples, averaging 11.3X among the three.


Sources: NACS, Nomura

Interest Rates

The cost of money is hovering at record lows, with U.S. Treasury bills at 2% to 3%. The average rate just prior to the 2008-2009 recession was about 5%.


Source: U.S. Department of the Treasury

Building Costs

Construction costs for new builds in urban locations skyrocketed by 44.5% in four years, according to NACS.


Source: NACS CSX data

Fuel Numbers

While fuel volumes were down in 2018, margins  and sales—along with gas prices—were up.


Source: NACS CSX data

Click here to see the complete Top 202 report.

Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Foodservice

Looking Up: Limited-Time Offers on the Rise

These deals continue to grow in all mealparts, Technomic reports show

Company News

Knowing Growing: QuikTrip Flexes in 2023

C-store chain celebrates 1,000th opening, opens 13th medical clinic, more

Foodservice

Get Creative in Foodservice to Thrive in 2024, Technomic Says

Report: Operators must lean into tech, menu and service innovation, take advantage of existing ingredients and resources

Trending

More from our partners