Casey's buying Kabredlo's

Thursday, November 4, 2010

LINCOLN, Nebraska -- A convenience store at West First and B in McCook will join two other Casey's convenience stores in town, according to a release issued Wednesday.

Ankeny, Iowa-based Casey's General Stores has purchased the Kabredlo's chain of stores, which started in Lincoln in 1991. The chain has grown to 22 stores in Nebraska, 21 in Kansas and one in Oklahoma.

Co-owner Mike Olderbak -- which is Kabredlo spelled backward -- told the Lincoln Journal Star that the time was ripe to leave the business. The deal was valued at $45.8 million.

The acquision, which must still be approved by regulators, "is an excellent fit to our existing store base and will add to our presence in Nebraska and Kansas, as well as allow us to penetrate a new state," said Robert Myers, president and CEO.

For the 12 months ended June 30, the Kabredlo's stores generated annual inside gross revenue approximately $52 million and sold approximately 36 million gallons of fuel, he said.

All of the stores will be converted into Casey's General Stores, Myers said.

"We are excited about this opportunity because Kabredlo's is a well established and managed chain in our market area," he said. "We expect this acquisition to be accretive in the first year of operation and provide future earnings enhancements as we realize operating efficiencies and integrate our prepared food program," Myers said.

The transaction is expected to close by the end of December and be funded by existing cash on hand, according to the Casey's release.

Casey's is a publicly traded company (NASDAQ symbol CASY) which turned down an offer of $43 per share of common stock from the 7-Eleven chain on Wednesday. CASY was trading at $39.67 per share this morning.

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  • While I understand a business deal, especially when it's good for you and your family to reap the reward from years of hard work and sacrifice, this really stinks for McCook.

    Kabredlo's was different from their drink selection to their gas selection. All we need is a couple more cookie-cutter Casey's stores in this town selling the exact same thing as the next one down the street.

    If there was any hope that the store would retain it's identity and remain something different, that was dashed in this article when they said that it would be converted into a Casey's store.

    Too bad.

    -- Posted by Justin76 on Thu, Nov 4, 2010, at 1:11 PM
  • I hope the upper management of Casey's has watched the TV show "Undercover Boss" to see that a convenience store chain is successful because of the people working there and not necessarily the name of the store.

    Kabredlo's, at least in McCook, was successful not only for a wide variety of products, but most importantly for Melinda and her staff. Kabredlo's is always a welcoming place to stop and grab a soda or chat for awhile. If the store does go away it will be another loss in the community as were the Gas-n-Shops.

    Here's to Kabredlo's...hopefully it will live on in some form, with the same staff, and not be, as Justin76 said, another cookie cutter Casey's or lots worse an empty building with fond memories.

    -- Posted by myopinion1 on Thu, Nov 4, 2010, at 2:02 PM
  • Although I can't imagine there will be a third Casey's in town, I also can't imagine that the West 1st & B location will be the one to go.

    If the building turns into the same footprint that the others are, and provide the same thing that the others are, then people that went to Casey's will still go to Casey's regardless where it is. (face it, MccCook isn't exactly the type of city thats hard to get around. A person can drive from the airport to Wal-Mart in what 5 minutes, maybe 7 tops) Those that went to Kabredlo's went there because it offered something different. Those folks wont be automatic carry overs so Casey's, which are not dummies, will see that they can get as much business from 2 outlets than they can with three without the overhead of a third store front. If that storefront didn't exist any longer, people wouldn't quit getting sodas and fuel, they will just go to another store..... as monopolies exist, what are the alternatives for fuel and fountain sodas in town? Ampride, and it isn't geared for the teenagers that cruise and hang out in the later evening hours. An empty storefront, my guess is the current West Casey's, and a loss of 1 store's worth of employment.

    This IS sad news.

    -- Posted by Nick Mercy on Thu, Nov 4, 2010, at 5:55 PM
  • This is why nobody stays in this area, and exactly why I can't wait to move away again. There isn't much here except the generic Wal-Mart and Caseys. 20 somethings don't want their selection of 5 or 10 restaurants, and their family friendly monopoly Casey's. McCook needs to wake up, the signs coming into town are below 8,000 and it's for a reason. Kudos to the Hormel foundation, Game on Games, Schmicks, The Kloset, Mac's, El Puerto, Sehnerts and all the other small local businesses trying to switch it up a little. Things like the Buckle, Wal Mart, and Caseys have just done nothing but take over and put a fog over what was special about McCook, every other town along high way 6 has the same exact stores, why would anyone want to bother to stop in this one?

    -- Posted by CardinalSweetie on Fri, Nov 5, 2010, at 10:24 AM
  • This is real bad. No variety again. Kabredlos was a good quick stop. Just competition for the others. So what if they were spread all over the country. We need another quick stop besides Casey's.

    Has anyone heard or can anyone verify the rumor that any property Casey's purchases when they sell it, like an old gas n shop, that whoever buys it cannot sell gas?? I have heard this for a few years. I don't know if it is true or not. Anyone know about this??????

    -- Posted by edbru on Fri, Nov 5, 2010, at 1:03 PM
  • While I hate to see Kabredlos leave, sure do not need another Casey's, just what do you propose should be done about it CardinalSweetie?

    Perhaps you should borrow a million or so and build a new place to compete with Casey's.

    The average joe in this town does not have the capital or borrowing power to do that. It is not "McCook's" fault that this guy sees a great opportunity to cash in and run with the money.

    Just like the guy that sold the Gas & Shops, they saw the money and ran. Neither one of these dudes live in McCook, so when they sell their operations they could really care less about McCook. Yea it stinks but it seems to make no sense to say this is a reason to leave.

    Just like the gal that once called into open line all cranked up about the fact that McCook didn't have a "Booger" King (her pronunciation). She also could borrow the bucks and build one. But she just wanted someone else to open one up, she just couldn't figure out why "someone" couldn't do that, she just wanted her "Whooper".

    edbru, I'm sure the rumor is true, usually someone like Caseys will not allow a competitor to move in.

    Whatever happened to the proposed Sisco truck stop on north 83? Guess that fell through, would be nice if one of those "someones" could build it.

    -- Posted by goarmy67 on Sun, Nov 7, 2010, at 8:01 PM
  • If I may, the reason kids move away and stay away is:

    1. Lack of job opportunities.

    2. Lack of fun and entertaining things to do.

    Addressing the first thing would keep the kids around until they reach that point in their lives where hooking up and hanging out nightly, passes.

    Addressing the later is a bit more difficult as what might be considered entertaining for one person may not be considered fun for the next so chasing that tail is fruitless. I will say, however, that the lack of a convenience store, regardless the variety of products it carries is most certainly not a reason to pack up and go but I digress.

    The point to be made is.......... well nothing, any debate over this is mute. It was a business opportunity which seemed to work well for both entities involved, neither of which have any loyalty to our community. There ARE a few spots in town that do have some loyalty to the community however..... they are our locally owned businesses that offer GREAT products, services and truly appreciate the business that they get every day. Keep it local, and when I say that I mean don't sent the money to Arkansas, or even Omaha. Local businesses are the ones owned and operated right here NOT just in McCook but in Southwest Nebraska and Northwest Kansas.

    Everyone in this part of the world needs each other, if you want to keep the "variety" shops around, look in the back yard 1st.

    Huh..... I guess there was a point there after-all!

    -- Posted by Nick Mercy on Mon, Nov 8, 2010, at 9:27 PM
  • *

    Darn, and I liked the crushed ice and flavoring... Hopefully they will decide to keep their seating, as there is a large group of people that will be without a place to congregate every morning.

    Just think...eventually no one will have to worry about differences, we will wear uniforms to work, school, & church, everyone will buy gas at Casey's and shop for food and micellaneous items at Wal-Mart. Can't wait, how exciting.

    -- Posted by cplcac on Tue, Nov 9, 2010, at 3:32 AM
  • I just hope the close that West 1st and B store. That alone would relieve the traffic congestion and confusion in that intersection.

    -- Posted by Hugh Jassle on Tue, Nov 9, 2010, at 10:39 PM
  • BECAUSE West 1st and B is so busy, expect that location to remain open. Location, Location, Location.

    It will be the West Caseys that locks up. Just a prediction, we'll see.

    -- Posted by Nick Mercy on Wed, Nov 10, 2010, at 12:20 PM
  • Nick,

    That intersection is busy because of Kabredlo's, not Casey's.

    -- Posted by Hugh Jassle on Wed, Nov 10, 2010, at 4:02 PM
  • Chunky,

    That 4 way stop light has been around for a long time. I'm pretty sure that has been a high traffic area for a while. Longer than Kabredlo's AND C-Mart. Its a walkable distance for those that work in the area, it's a prime location property.

    -- Posted by PensiveObserver on Wed, Nov 10, 2010, at 9:53 PM
  • I was more concerned about those sitting in the turning lanes to get to Kabredlo's, keeping those who are trying to turn onto west 1st from using the turning lanes.

    -- Posted by Hugh Jassle on Thu, Nov 11, 2010, at 2:31 PM
  • I agree, that can become a cluster at peak times.

    -- Posted by PensiveObserver on Thu, Nov 11, 2010, at 4:52 PM
  • We need a Casey's on the north end of Norris, or somewhere in northern McCook.

    -- Posted by Hugh Jassle on Thu, Nov 11, 2010, at 4:58 PM
  • Yeah..... north on 83 maybe. Convenience stores kinda stay on the VERY high traffic areas, north end of Norris.... not so much. It's not even zoned for such a thing up there. North 83.... the more I think about that though, that would be quite convenient.

    -- Posted by Nick Mercy on Fri, Nov 12, 2010, at 1:26 AM
  • Nick, I agree with you 100% If you are not on B Street there are not any places to get a soft drink, snack or gas even. After seeing so many trucks in the Walmart parking lot at night, a small truck stop with c-store on the north edge of town would be wonderful!!!! Speaking from experience when I was with my late husband in his truck, finding a spot to park is sometimes a challenge. Sometimes having to park in the not so safest of place. It would be wonderful if someone could do that. Wished I could but unless I hit the lottery, that's not going to happen, lol. Food for thought anyway.

    -- Posted by susanne_1989 on Fri, Nov 12, 2010, at 9:19 AM
  • Wasn't there supposed to be a truck stop put in on North 83?

    -- Posted by npwinder on Fri, Nov 12, 2010, at 2:02 PM
  • SISCO Truck Stop. Never moved forward.

    -- Posted by Nick Mercy on Sun, Nov 14, 2010, at 3:56 PM
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