Casey's buying Kabredlo's
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.