The transaction will double Maverik's convenience store footprint.
DES MOINES, Iowa — The Kum & Go convenience store chain is getting a new owner.
Maverik – Adventure's First Stop is acquiring Kum & Go, a chain of more than 400 c-stores across 13 states, from the Krause Group. As part of the deal, Maverik will also acquire Solar Transport, a tank truck carrier and logistic provider owned by the Krause Group.
It was reported in February that Kum & Go was exploring all options, including a sale. Financial terms were not disclosed.
The combination of Maverik and Kum & Go creates a best-in-class convenience store operator across the Midwest and Rocky Mountain regions with a differentiated value proposition across fuel, foodservice and inside store offerings, according to the two companies.
"We have long admired the Kum & Go brand. Kyle [Krause] and Tanner [Krause], and the generations before them, have built an exceptional business that pairs quality with convenience and puts people first," said Maverik President and Chief Adventure Guide Chuck Maggelet.
"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. We look forward to welcoming Kum & Go and Solar Transport associates and stores to Maverik – Adventure's First Stop," he added
Established in Hampton, Iowa in 1959, Kum & Go is a fourth-generation, family-owned convenience store chain.
"Kum & Go has always been driven by a desire to innovate, grow and serve our customers, our communities and our people. Maverik has built its business in the same way and is ideally positioned to lead the next chapter of growth for Kum & Go," said Kyle Krause, Krause Group president and CEO. "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."
Kyle Krause led the c-store chain until 2018 when he handed the reins to his son, Tanner Krause.
"This is the most momentous day in the 63-year history of our family business. My family has worked for four generations to create and build Kum & Go into a business that has done an incredible amount of good for our people, for Iowa and beyond. Serving as president for the past five years has been the fulfillment of my lifelong dream," said Tanner Krause, president and CEO of Kum & Go. "I've had the pleasure of knowing Chuck Maggelet for years and hold a lot of respect for him as a person and a business leader. I'm confident the Maggelets and Maverik will be good stewards of Kum & Go's people and culture for generations to come."
The transaction is expected to close in the coming months and is subject to customary closing provisions.
BofA Securities and BMO Capital Markets Corp. served as financial advisors to FJ Management, Maverik's parent company. 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.
Based in Salt Lake City, Maverik — Adventure's First Stop operates nearly 400 locations across 12 western states, making it the largest independent fuel marketer in the Intermountain West. Locations include Arizona, California, Colorado, Idaho, New Mexico, Nebraska, Nevada, Oregon, South Dakota, Utah, Washington and Wyoming.
FJ Management Inc. is a Utah-based private holding company that manages a diverse portfolio of petroleum, health care and hospitality related assets.
Des Moines-based Krause Group is the parent company to a diverse set of businesses that include convenience retail, logistics, Italian wineries and hospitality, real estate, agriculture and soccer clubs.