EL DORADO, AR: Murphy USA Inc. will acquire QuickChek Corp. for $645 million in an all-cash transaction. The purchase price includes expected tax benefits valued at $20 million for a net after-tax purchase price of $625 million, the company reported.

The deal is being financed with a combination of cash on hand, existing credit facilities and new debt. Murphy USA obtained committed financing from the Royal Bank of Canada.

Founded as an extension of Durling Farms in 1967, Whitehouse Station, N.J.-based QuickChek is a family-owned convenience store chain that operates 157 locations in New Jersey, New York’s Hudson Valley and Long Island. It is known for its high-quality food and beverage program with a strong regional brand and customer following, and a high-volume fuel offer that is offered at 89 of its newest stores.

QuickChek has per-year merchandise sales of $3.5 million; combined merchandise margins of 38 percent, with food and beverage representing more than 50 percent of the mix; and 3.8 million fuel gallons per store per year. It also has a history of same-store sales growth and a rich real estate pipeline through which it can sustain unit growth within its existing footprint, according to the announcement.

“The transaction is also expected to create direct synergies that leverage our enterprise scale and our distinctive capabilities in fuel, tobacco and loyalty,” he added. “We are excited to join forces with an exceptional and highly engaged team at QuickChek who share Murphy USA’s passion for delivering excellence every day to all our stakeholders.”

The transaction is expected to close during the first quarter of 2021, subject to customary closing conditions and regulatory approval.

“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.”

El Dorado, Ark.-based Murphy USA operates nearly 1,500 sites located primarily in the Southwest, Southeast and Midwest United States. The company and its team of nearly 10,000 employees serve an estimated 1.7 million customers each day through its network of retail gasoline stations in 25 states. The majority of Murphy USA’s sites are located in close proximity to Walmart stores. The company also markets gasoline and other products at standalone stores under the Murphy Express brand. 

“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.

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