Omaha-based Bucky’s Convenience Stores is being purchased by one of its competitors, Casey’s General Stores.
The $580 million cash purchase of Buchanan Energy was announced Monday. The price includes tax benefits valued at $80 million.
Buchanan Energy operates 94 stores and 79 dealer locations in Illinois, Iowa, Missouri, Nebraska and Texas.
Casey’s operates about 2,200 locations in 16 states and describes itself as the nation’s fourth-largest convenience store chain. Casey’s is also acquiring the real estate Bucky’s had planned to use for future expansion.
The acquisition will bring Casey’s to about 2,300 stores.
For the consumer, it means that Casey’s pizza will become available at Bucky’s. The popular pizza has made Casey’s the nation’s fifth-largest pizza chain, according to the company.
Over the next few years the names of Bucky’s stores will change to Casey’s, said Katie Petru, a spokeswoman for Casey’s. It’s not clear how the purchase will affect personnel. Petru said Casey’s is assessing how to best combine the two companies. Casey’s said in its statement Monday that the company expects to achieve $23 million in “annual synergies” by the third year.
Casey’s said the purchase puts the company in a good position for future growth and will allow it to better leverage its size for fuel purchases.
Buchanan Energy was founded 40 years ago.
Steve Buchanan, founder and president of Buchanan, said he was pleased that the company found a home with a top convenience store chain.
“Our shared Midwestern roots and community values are aligned as we continue to serve our loyal customers,” he said in the statement.
The sale is expected to be finalized by the end of the year.