Ankeny, Iowa-based Casey’s General Stores Inc. has reached an agreement to acquire 40 Pilot convenience stores from Pilot Corp. in an all-cash transaction for $220 million.
The 40 Pilot stores will extend Casey’s presence in Tennessee and Kentucky with well-established locations primarily in the Knoxville, Tennessee, market.
“These stores have a track record of strong performance and are high quality assets that will be a great fit for Casey’s fresh food program, especially our handmade pizza,” said Darren Rebelez, president and CEO at Casey’s. “We look forward to carrying forward these Haslam family legacy stores and welcoming their team into the Casey’s family.”
“Casey’s is a great convenience store chain that shares similar values as Pilot, and we couldn’t be more excited for what they will bring to the community,” said Pilot Corp. Chairman Jimmy Haslam. “We are very thankful for the tremendous service our team members have provided and know they will be in great hands with Casey’s. Pilot and the Haslam family will always be committed to the Knoxville community, our philanthropic efforts and being a top employer in the region. The company will continue our intense focus on growing our core travel center network and energy businesses with significant investments in our people and our stores to provide the best team member and guest experience at our more than 800 locations across North America.”
Casey’s will fund the transaction with a combination of cash on hand and bank financing. The transaction is subject to customary closing conditions and regulatory approvals, including Hart-Scott-Rodino clearance.
Pilot’s convenience stores are owned and operated independently from its travel center and energy businesses and were not included in the Berkshire Hathaway transaction. BofA Securities Inc. acted as exclusive financial advisor to Pilot Corp.
Casey’s is a Fortune 500 company operating more than 2,300 convenience stores. Founded more than 50 years ago, the company has grown to become the third-largest convenience store retailer and the fifth-largest pizza chain in the United States.