Yesway just made its largest deal in its four-year history.
The company, which is operated by BW Gas & Convenience, an affiliate of Beverly, Mass.-based Brookwood Financial Partners, entered into a definitive agreement to purchase Allsup’s Convenience Stores.
Clovis, N.M.-based Allsup’s has a portfolio of 304 stores in New Mexico, West Texas and Oklahoma. The transaction is subject to regulatory approval and customary closing conditions.
“Allsup’s founders, Lonnie and Barbara Allsup, were true pioneers, innovators, and visionaries of convenience store retailing,” said Thomas Nicholas Trkla, chairman and CEO of Yesway. “They were the first to offer customers hot, cooked foods, self-serve gasoline sales, and 24-hour service. We could not be more pleased to be joining forces with such a strong, beloved company and talented team of employees.
“We look forward to building on Allsup’s legendary heritage and continuing to offer many of the amazing products and services Allsup’s customers are so passionate about, including — without question — the world-famous Allsup’s Burrito,” he added.
Goldman Sachs is acting as financial advisor to Yesway for this transaction, and Goldman Sachs and RBC are joint lead arrangers on the associated debt facility.
“We are very excited to have selected Yesway as the acquirer of our company and the future custodian of our brand and legacy,” said Mark Allsup, president of Allsup’s Convenience Stores. “We chose Yesway as a partner because their values are truly aligned with ours. They share our commitment to support the local communities we serve, our unwavering pledge to our customers to provide them with a terrific shopping experience, and our dedication to the success and well-being of our employees.”
Since entering the convenience store industry in late 2015, Yesway has acquired more than 150 c-stores located in Iowa, Texas, New Mexico, Oklahoma, Kansas, Missouri, Nebraska, South Dakota and Wyoming. The company plans to assemble a portfolio comprising more than 500 c-stores in selected regions of the United States over the next several years.
Des Moines-based Yesway was No. 6 on the 2019 Convenience Store News Top 20 Growth Chains ranking and No. 48 on the 2019 Convenience Store News Top 100 ranking. Allsup’s was No. 29 on the Top 100.
“Mark was very deliberate and selective in choosing a buyer for our company and we believe he has made an excellent choice in Yesway,” said Barbara Allsup, who has served as the company’s vice president of finance since its founding. “Lonnie and I opened our first store in Roswell, N.M. in 1956 and have operated as a private, family-owned business ever since. We have always cared deeply about maintaining strong family commitments, having honest, hard-working employees, and partnering with helpful service providers, vendors and other professionals in the communities we serve. We believe that our legacy is in very good hands with Yesway.”
