Convenient store chain Casey’s General Stores has agreed to acquire Fikes Wholesale, which owns the Cefco chain, for $1.145 billion.

Cefco started as a filling station in Texas in 1952 and has grown to 198 locations in several states.

The acquisition includes 148 Cefco locations in Texas and 50 in Alabama, Florida, and Mississippi, a dealer network, a fuel terminal and a commissary to support the Texas stores. 

Casey’s network will increase to nearly 2900 stores nationwide following the deal.

“This acquisition will allow Casey’s to accelerate our unit growth plan with high-quality assets that, along with our recent 22 store acquisition in northern Texas, will provide an expanded presence in Texas and allow us to continue to expand in the state and region,” said Darren Rebelez, board chair, president and CEO of Casey’s. 

“We expect the acquisition will create value for Casey’s shareholders in the near- and long-term and will be accretive to Casey’s EBITDA in the current fiscal year.”

The deal includes tax benefits valued at approximately $165 million for a net after-tax purchase price of $980 million. The company plans to finance the deal through balance sheet cash and bank financing. 

The all-cash transaction is expected to close in the fourth quarter of this year, subject to customary closing conditions and regulatory approval.