Southern convenience chain purchases QuickChek for $645M

Gabrielle Saulsbery//December 14, 2020

Southern convenience chain purchases QuickChek for $645M

Gabrielle Saulsbery//December 14, 2020

Southern gas station and convenience store chain Murphy USA will purchase QuickChek Corp. for $645 million.

The purchase price includes expected tax benefits valued at $20 million for a net after-tax purchase price of $625 million, the companies announced Monday.

QuickChek was founded in 1967 in Whitehouse Station by Carlton Durling as an extension of Durling Farms, his door-to-door milk service that originally opened in 1888. Until now, it’s been family-owned, currently run by CEO and Chairman Dean Durling, Carlton’s son.

Some 157 locations pepper central and northern New Jersey and the New York metro area, with 89 selling gas as well.

QuickChek’s per-store per-year merchandise sales are $3.5 million, combined merchandise margins of 38% with food and beverage offerings representing over 50% of the mix, and per-store per-year fuel gallons of 3.8 million, according to the company.

Murphy USA updated its capital allocation strategy in October, and this acquisition aligns with the strategy, according to 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,” Clyde said in a prepared statement. “The transaction is also expected to create direct synergies that leverage our enterprise scale and our distinctive capabilities in fuel, tobacco and loyalty.”

Murphy USA, headquartered in El Dorado, Ark., operates 1,500 in the south and the midwest.

“QuickChek and Murphy USA both reflect a family heritage and a strong people culture,” Durling said in a prepared statement. “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.”

The transaction will be financed with a combination of cash on hand, existing credit facilities and new debt, the companies announced. It’s expected to close during the first quarter of 2021, subject to customary closing conditions and regulatory approval.