Dive Brief:
- Convenience retailer Maverik, along with its parent company FJ Management, has agreed to acquire Kum & Go’s 400-plus store network for an undisclosed amount, according to a Friday announcement.
- Maverik will also acquire Solar Transport, a tank truck carrier and logistics provider owned by Kum & Go’s parent company, Krause Group, as part of the deal.
- The move comes about eight weeks after reports surfaced that Des Moines, Iowa-based Kum & Go was exploring a sale. Maverik, which operates around 400 locations, will more than double its footprint with the acquisition, which promises to bring massive implications across the c-store landscape.
Dive Insight:
When news broke in February that Kum & Go was looking to offload its assets, experts noted that both large and mid-sized retailers could be in the mix during what has been an attractive time for c-store M&A.
By acquiring Kum & Go, Salt Lake City-based Maverik — which opened its 400th store in January — will have a footprint that includes over 800 convenience stores across the Midwest and Rocky Mountain regions. The transaction is expected to close in the coming months, subject to customary closing provisions, according to the announcement.
Chuck Maggelet, president of Maverik, said his team has “long admired” Kum & Go’s leaders, Kyle and Tanner Krause, who have built an “exceptional” business that puts convenience and people first.
“We are honored to carry their legacy forward as we build on Kum & Go’s strong operating and innovation capabilities and expand our adventurous convenience experience,” Maggelet said in the announcement.
Kyle Krause, president and CEO of the Krause Group, noted the similarities between Kum & Go and Maverik as the two businesses prepare to merge.
“We have much in common and I look forward to welcoming Chuck’s leadership, his team and Maverik to Des Moines, which will always be the home of the Krause Group and important to our future,” he said.
Founded in 1959, family-owned Kum & Go has grown into one of the largest and most notable c-store chains in the Midwest, operating more than 400 stores in 13 states. The Krause Group also owns an Italian soccer club, wineries, logistics companies and other businesses.
Besides Utah, Maverik operates stores in 11 other states: Arizona, California, Colorado, Idaho, New Mexico, Nebraska, Nevada, Oregon, South Dakota, Washington and Wyoming.
