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ANKENY, Iowa -- Convenience store chain Casey's General Stores, Inc., based here, said late last week that it had signed a letter of intent to buy 58 stores from Lincoln, Neb.-based Gas 'N Shop, Inc. The 58 stores consist 54 in Nebraska, three in Kansas, and one in Iowa. All of the locations purchased will be converted to Casey's General Stores. For the year ended Dec. 31, 2004, the 58 stores generated about $108 million in gross sales revenue.
"The acquisition of the Gas 'N Shop locations is an excellent fit to our existing store base and will nearly double our presence in Nebraska," noted Casey's chairman and c.e.o. Ron Lamb in a statement. "We are excited about this opportunity because Gas 'N Shop is a very established and well-managed chain, with over 30 years of operations in our market area."
Lamb added, "We expect this acquisition to be accretive in the first year of operation and to provide further earnings enhancements as we realize operating efficiencies and complete the addition of our prepared food operations."
The acquisition is subject to certain regulatory approvals and other customary closing conditions, including the Casey's receipt of satisfactory inspection reports on the stores, and the execution of a final asset purchase agreement. The transaction is expected to close during Casey's second fiscal quarter and will be funded by a combination of existing cash and operating cash flow.