(RTTNews) - Convenience store chain Casey's General Stores, Inc. (CASY) announced Monday an agreement to acquire Buchanan Energy, owner of Bucky's Convenience Stores, in an all-cash transaction for $580 million. The purchase price includes tax benefits valued at $80 million for a net after-tax purchase price of $500 million.
Buchanan Energy and Bucky's Convenience Stores were founded as a family-owned and operated business in 1980, operating convenience stores primarily in Illinois and Nebraska.
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 to over 2,300 stores.
The acquisition will expand Casey's presence in key Midwest markets, delivering accretive earnings growth and creating value for shareholders, team members and guests.
Casey's will finance the transaction with a combination of cash on hand, revolver capacity and bank financing. It expects to achieve $23 million in annual synergies by the third year.
The transaction is anticipated to close by the end of calendar year 2020, subject to customary closing conditions and regulatory approval.
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