Kum & Go's owners mull convenience store chain sale -sources
14/02/2023 11:00
By Abigail Summerville
Feb 14 (Reuters) - The Krause family is exploring
options for Kum & Go, the U.S. convenience store chain it
launched more than 60 years ago, potentially including a sale of
the company that could value it at close to $2 billion,
according to people familiar with the matter.
The family is working with JPMorgan Chase & Co JPM.N to
identify the most financially attractive option for Kum & Go as
the U.S. convenience store sector experiences a wave of
consolidation, the sources said.
Kum & Go's owners are also exploring a refinancing, real
estate leasebacks or other forms of recapitalization as
potential alternatives, one of the sources added.
The sources cautioned that no transaction is certain and
asked not to be identified because the deliberations are
confidential.
A spokesman representing both the Krause family and Kum & Go
declined to comment, citing a policy of not discussing "rumors
or speculation". JPMorgan declined to comment.
Convenience store operators have turned to dealmaking in the
face of high inflation to save on costs through economies of
scale and expand their footprint.
ARKO Corp agreed in October to buy Pride Convenience
Holdings LLC, an operator of 31 convenience stores, for $230
million. One month earlier, ARKO agreed to acquire about 150
convenience stores and fuel supply rights to approximately 200
commercial customers from Transit Energy Group for $375 million
plus the value of inventory. Also, 7-Eleven acquired Speedway
from Marathon Petroleum Corp. in 2020 for $21 billion, marking
the largest acquisition in sector history.
Kum & Go has already shed some stores. Last year, it sold 14
convenience stores in Missouri that no longer aligned with its
expansion plans to White Oak Station.
Kum & Go owns over 430 convenience stores across 11 states
including Iowa, Colorado, Oklahoma and Missouri, and has more
than 5,000 employees.
Bill Krause and Tony Gentle founded the Des Moines,
Iowa-based company in 1959. It is part of Krause Group, which
owns other businesses ranging from wineries to soccer teams.
Kyle Krause is CEO of Krause Group and stepped down as Kum &
Go’s CEO in 2021, handing over the reins of the business to his
son Tanner Krause.
(Reporting by Abigail Summerville in New York; Editing by David
Gregorio)
((abigail.summerville@thomsonreuters.com))