Summary
Casey's General Stores, Inc. (CASY) announced on November 13, 2020, a significant strategic acquisition of Buchanan Energy, comprising 94 retail stores and 79 dealer locations for an aggregate purchase price of $580 million in cash, subject to customary adjustments. This transaction is expected to close by December 31, 2020, and will expand Casey's store footprint to over 2,300 locations, bolstering its presence in key markets. To finance a portion of this acquisition, Casey's has secured a commitment for a $100 million senior unsecured 364-day bridge loan facility from Goldman Sachs Bank USA. The acquisition is subject to standard closing conditions, including antitrust clearance under the HSR Act, accuracy of representations and warranties, and the absence of any material adverse effect on the target business. This move signals Casey's commitment to growth and market consolidation within the convenience store sector.
Key Highlights
- 1Casey's General Stores enters into an Equity Purchase Agreement to acquire Buchanan Energy for $580 million.
- 2The acquisition includes 94 retail stores and 79 dealer locations, significantly expanding Casey's operational footprint.
- 3The deal is expected to close by December 31, 2020, subject to customary closing conditions.
- 4A $100 million, 364-day senior unsecured bridge loan facility commitment has been secured from Goldman Sachs Bank USA to help finance the transaction.
- 5Antitrust clearance under the Hart-Scott-Rodino (HSR) Act is a key condition for closing the transaction.
- 6The acquisition will increase Casey's total store count to over 2,300 locations.