WEST DES MOINES – Kum & Go and Casey’s General Stores Inc. announced Sept. 11 they have signed an asset purchase agreement for Casey’s to acquire 22 convenience stores from Kum & Go. The stores are located in Iowa, Missouri and North Dakota.
The Kum & Go located at 400 S. Main St. is on the list of those being purchased by Casey's.
Two Kum & Go Stores located at 903 N. Sumner Ave. and and 301 W. Taylor St. in Creston are also on the list of those being purchased by Casey's.
There are currently three Casey's stores in Osceola.
“Our company is committed to carefully-planned, strategic growth – that’s evidenced by the fact that we’ll open 40 new stores this year alone,” said Kyle J. Krause, Kum & Go president and CEO. “It’s our continued desire to consolidate and strengthen our asset base and offer a consistent brand to our customers in Kum & Go’s core markets. The sale of these properties, in addition to our new store growth, brings us one step closer to carrying out that strategy.”
There is no word at this point on which, if any, Kum & Go or Casey's stores will be closed because of the deal.
“These stores are an excellent fit to our existing store base and will allow us an opportunity to operate in a new state,” said Robert Myers, president and CEO of Casey’s. “We expect this acquisition to be accretive in the first year of operation and enhance future earnings as we integrate our prepared food operations.”
The acquisition is subject to certain regulatory approvals and other customary closing conditions, including the receipt of satisfactory inspection reports related to the stores. The transaction is expected to close in November.
Both chains are based in Iowa. Kum & Go has more than 400 stores while Casey's has approximately 1,700.