Maverik and its parent company, FJ Management, has announced the acquisition of Kum & Go, a family-owned convenience store chain with over 400 locations across 13 states, from Krause Group.
As part of the transaction, Maverik will also acquire Solar Transport, a tank truck carrier and logistic provider owned by the Krause Group.
The deal was announced Friday. Financial terms were not disclosed.
Kum & Go has a substantial presence in Eastern Iowa, with more than a dozen locations in Cedar Rapids, Marion, North Liberty, Iowa City, Coralville, Tiffin, Williamsburg and Riverside.
Established in Hampton, Iowa in 1959, Kum & Go is a fourth-generation, family-owned convenience store chain, and throughout its history has donated 10% of all profits back to the communities it serves.
FJ Management officials say the combination of Maverik and Kum & Go creates a best-in-class convenience store operator across the Midwest and Rocky Mountain regions.
“We have long admired the Kum & Go brand,” Maverik president and chief adventure guide Chuck Maggelet said in a release. “Kyle and Tanner, and the generations before them, have built an exceptional business that pairs quality with convenience and puts people first. We are honored to carry their legacy forward as we build on Kum & Go’s strong operating and innovation capabilities and expand our adventurous convenience experience.”
“Kum & Go has always been driven by a desire to innovate, grow and serve our customers, our communities and our people,” Krause Group president and CEO Kyle Krause said. “Maverik has built its business in the same way and is ideally positioned to lead the next chapter of growth for Kum & Go. We have much in common and I look forward to welcoming Chuck’s leadership, his team and Maverik to Des Moines, which will always be the home of the Krause Group and important to our future.”
“This is the most momentous day in the 63-year history of our family business,” Kum & Go president and CEO Tanner Krause added. “My family has worked for four generations to create and build Kum & Go into a business that has done an incredible amount of good for our people, for Iowa and beyond. Serving as president for the past five years has been the fulfillment of my lifelong dream. I’ve had the pleasure of knowing Chuck Maggelet for years and hold a lot of respect for him as a person and a business leader. I’m confident the Maggelets and Maverik will be good stewards of Kum & Go’s people and culture for generations to come.”
The transaction is expected to close in the coming months and is subject to customary closing provisions.
Maverik operates nearly 400 locations across 12 western states, making it the largest independent fuel marketer in the Intermountain West. Locations include Arizona, California, Colorado, Idaho, New Mexico, Nebraska, Nevada, Oregon, South Dakota, Utah, Washington, and Wyoming. The company is is known for its BonFire food, made fresh daily in each store.
Founded in 1968 by O. Jay Call, FJ Management Inc is a Utah-based private holding company that manages a diverse portfolio of petroleum, healthcare, and hospitality related assets. Crystal Maggelet took over as CEO in 2009, and today FJ Management ranks among the largest privately-held companies in the United States.
Krause Group is the parent company to a diverse set of businesses that include convenience retail, logistics, Italian wineries and hospitality, real estate, agriculture, and soccer clubs.
Solar Transport, founded 60 years ago, is a tank truck carrier and logistics provider.
The deal comes as five Kwik Shop locations in the Cedar Rapids metro area are in the process of being rebranded as Sinclair stores, signaling the convenience store chain’s apparent exit from the local market.
Signs bearing the Sinclair logo and the phrase “coming soon” are in place at the Kwik Shop locations at 3301 J St. SW, 1003 First Ave. SW, 2904 Center Point Rd. NE and 4201 Center Point Rd. NE, all in Cedar Rapids, and at 300 Blairs Ferry Rd. NE in Hiawatha.
All five locations were sold in separate transactions recorded from mid-January through mid-February, according to Cedar Rapids assessor’s records. The adjusted transaction amounts ranged from $1.02 million to $1.18 million.
