The gas station and convenience store company, which has 1,500 locations across the Southwest, Southeast and Midwest, has agreed to acquire QuickChek in a $645 million all-cash transaction. Founded in 1967, QuickChek operates 157 stores throughout central and northern New Jersey and the New York metro area.
Murphy will finance the deal using cash on hand, existing credit facilities and new debt. The purchase price includes $20 million in expected tax benefits.
“In October we outlined an updated capital allocation strategy and committed to improving our food and beverage offer at existing and future sites,” said Murphy USA president and CEO Andrew Clyde. “This transaction greatly accelerates those efforts and benefits, and is expected to provide reverse synergies across our network, while enhancing future returns on new stores. The transaction is also expected to create direct synergies that leverage our enterprise scale and our distinctive capabilities in fuel, tobacco and loyalty.”
The deal is expected to be earnings accretive in 2022, the first full year of combined operations, with annual run rate synergies of $28 million expected by the third year. It is expected to close in the first quarter of 2021
QuickChek was founded in 1967 as an extension of Durling Farms, a door-to-door milk and fresh dairy products delivery service that originally opened in 1888. Based in Whitehouse, N.J., the company enjoys a strong regional following and has a “rich real estate pipeline to sustain unit growth within its existing footprint,” according to a statement by Murphy.
“QuickChek and Murphy USA both reflect a family heritage and a strong people culture,” said QuickChek CEO and chairman Dean Durling. “I am thrilled by Murphy USA’s commitment to honor our legacy and preserve our brand while learning from our business model. I am proud of what we have accomplished in making QuickChek what it is today and I am excited about the opportunities for continued growth and success in the next chapter in QuickChek’s journey. I know QuickChek’s dedicated employees and valued customers remain in good hands.”