Yesway shows no signs of losing its momentum.
The fast-growing convenience store chain said that it raised $190 million in new equity in the second half of 2022 to continue funding its successful new store construction program. The majority of the structured equity comes from HPS Investment Partners, a leading global investment firm with $95 billion of assets under management.
In the past year, Yesway undertook an aggressive campaign to grow its store count and financial performance through the completion of new stores and raze-and-rebuild projects across its portfolio and geographic footprint. Throughout 2022, Yesway completed the construction of 17 new stores and 21 raze-and-rebuild projects.
Given the success of the completed projects to-date, Yesway said plans to construct 28 additional new stores in 2023, the majority of which will be funded using the proceeds of the new equity it has raised.
"We are tremendously excited to announce our new partnership with HPS," said Tom Trkla, chairman and CEO of Yesway. "We are deeply appreciative of the collaborative and accommodating nature of our discussions with HPS that showed a keen understanding of our business and are impressed by the talent of their investment team."
In August, the retailer debuted its new Allsup’s Express store format, located adjacent to the campus of Texas Tech University, in Lubbock, Texas. (Yesway acquired the then 421-store Allsup’s Convenience Stores chain in 2019.). The 3,000-sq.-ft. bodega-style location features a tailored assortment of merchandise offerings including food, beverages (including beer and wine) and everyday items tailed to the university community and students.
And in September, Yesway acquired Tres Amigos, which operates nine convenience stores in Texas.
Yesway was founded in 2015 by Brookwood Financial Partners, a real estate private equity firm that specializes in acquiring and managing value-add commercial real estate and real estate-related operating businesses.
Since Yesway's inception, Brookwood has raised approximately $825 million in equity to effect Yesway's growth strategy.
Yesway was advised on the transaction by Latham & Watkins and HPS was advised by Gibson, Dunn & Crutcher.
Headquartered in Fort Worth, Tex., Yesway operates 428 stores located in rural and suburban markets in Texas, New Mexico, South Dakota, Iowa, Kansas, Missouri, Wyoming, Oklahoma, and Nebraska. Yesway operates its portfolio primarily under two banners: Yesway and Allsup.