8-KMaterial AgreementsExhibits & Filings

CASEYS GENERAL STORES INC 8-K Report, Material Agreement (Aug 9, 2006)

Filed August 9, 2006For Securities:CASY

Summary

Casey's General Stores, Inc. (CASY) announced a significant expansion through an Asset Purchase Agreement with Nordstrom Oil Company and associated entities. The agreement, dated August 4, 2006, involves the acquisition of up to 33 convenience store properties in Iowa. This strategic move is expected to increase Casey's store count and geographical presence within the state. The acquisition is valued at an expected purchase price of $63.5 million, subject to adjustments based on specific real estate and inventory valuations. The transaction is anticipated to close in two phases, with the first closing occurring after the Hart-Scott-Rodino waiting period expires and the second closing on the subsequent business day. The company plans to fund this acquisition using a combination of available cash and debt financing.

Key Highlights

  • 1Casey's General Stores, Inc. (CASY) entered into an Asset Purchase Agreement to acquire up to 33 convenience store properties in Iowa from Nordstrom Oil Company and related entities.
  • 2The acquired assets include land, buildings, equipment, inventory, and goodwill associated with the "HandiMart" convenience store locations.
  • 3The expected purchase price for the acquisition is $63.5 million, with potential adjustments for specific real estate interests and inventory.
  • 4The transaction is structured with two closing dates, with the first following the termination of the Hart-Scott-Rodino waiting period and the second on the subsequent business day.
  • 5Casey's expects the acquisition to be completed during its second fiscal quarter.
  • 6The acquired stores generated approximately $174 million in total sales during the 12-month period ended November 30, 2005, with gasoline accounting for about 75% of sales.
  • 7The company intends to finance the acquisition through available cash and debt financing.

Frequently Asked Questions

This 8-K filing announces a material definitive agreement entered into by Casey's General Stores, Inc. and its subsidiary, Casey's Marketing Company, to acquire up to 33 convenience store properties and related assets from Nordstrom Oil Company and its affiliates.

The expected purchase price for the acquired assets is $63.5 million. Casey's General Stores plans to finance this acquisition using a combination of its available cash reserves and by undertaking debt financing.

The acquired assets include convenience store properties, land, buildings, equipment, inventory, and goodwill. During the 12-month period ending November 30, 2005, these 33 locations generated approximately $174 million in total sales, with gasoline sales comprising about 75% of the total.

Yes, the purchase price is subject to adjustments. A key adjustment relates to the potential acquisition of ownership interests in three locations. If Nordstrom Oil Company successfully acquires and transfers these interests, Casey's will pay an additional $1.3 million. If these interests cannot be acquired, these three locations will be excluded, and the purchase price will be reduced to $58.9 million.