Maverik Acquires Kum & Go in Convenience Store Consolidation

Convenience stores—particularly those with gas pumps in front of them—continue to be among the hottest real estate sectors around.

A consolidation of regional chains continues as national chains vie to establish hegemony; this week’s consolidation involved a chain the was founded in 1959.

Maverik–Adventure’s First Stop and its parent company, FJ Management, have acquired Kum & Go, a family-owned convenience store chain with more than 400 locations across 13 states, from Krause Group, Chain Store Age reported.

Financial terms were not disclosed for the deal, which includes the acquisition by Maverik of Solar Transport, a tank truck carrier and logistic provider owned by the Krause Group. Financial terms were not disclosed.

The acquisition doubles the size of Maverik, which operates nearly 400 locations across 12 Western states.  The combination of Kum & Go and Maverick will result in a combined footprint in 20 states across the Midwest and Rocky Mountain regions with a differentiated value proposition across fuel, food-service and in-store offerings, the report said.

Established in Hampton, IA, Kum & Go is a fourth-generation, family-owned convenience store chain led by Tanner Krause, president and CEO. Kyle Krause serves as president and CEO of Krause Group.

BofA Securities and BMO Capital Markets Corp. served as financial advisors to FJ Management. Kirkland & Ellis LLP served as FJ Management’s legal advisor. J.P. Morgan Securities LLC served as financial advisor to Krause Group. Vedder Price served as Krause Group’s legal advisor.

BP, the British oil giant, announced during Q1 2023 that it is acquiring TravelCenters of America (TA) for $1.3B in a cash deal. The acquisition will add 281 highway locations in 44 states operating under the TA, Petro Shopping Centers and TA Express brands.

TA’s locations include more than 600 full-service and quick-service restaurants as well as gas stations and repair shops for cars and trucks. Each location averages encompasses about 25 acres, according to a report in Chain Store Age.

TA has been upgrading its outlets across the US. Last month, the company announced plans to install EV charging units at 200 US locations.

BP, which operates an estimated 8,000 off-highway locations globally, said the acquisition of TA will enable it to offer truck fleets and other vehicles “seamless nationwide service” in the US.

BP currently operates about 2,000 North American gas station convenience stores under the BP, Amoco, Thornton’s and ampm brands, said it is aiming to expand the portfolio to 3,000 stores by 2030.

“We’re doing exactly what we said we would, leaning into our transition growth engine. This deal will grow our convenience and mobility footprint across the US and grow earnings with attractive returns,” said Bernard Looney, CEO of BP, in a statement.

Last summer, the company opened its first East Coast location for its ampm brand in NYC, one of four East Coast openings for the chain in 2022.

Jon Pertchik, TA’s CEO, said in a statement that BP’s acquisition of TA for $86 per share is the result of “a successful implementation of our turnaround and strategic plans.”

“We have improved our core travel center business, expanded our network, launched eTA to prepare for the future of alternative fuels, and improved our operating and financial results,” Pertchik said.