Murphy Agrees To $645 Million Acquisition Of QuickChek

Arkansas fuel chain Murphy USA has agreed to a $645 million all-cash deal to acquire New Jersey convenience store chain QuickChek. The purchase price includes $20 million in tax benefits, making the net purchase price $625 million, according to a press release.

Andrew Clyde, president and CEO of Murphy USA, said in the release that the company anticipates the deal will create “direct synergies that leverage our enterprise scale and our distinctive capabilities in fuel, tobacco and loyalty.”

The deal is expected to close during the first quarter of 2021, and it was financed with cash as well as existing credit facilities and new debt, including a financing commitment from the Royal Bank of Canada, the release stated.

“QuickChek and Murphy USA both reflect a family heritage and a strong people culture,” said Dean Durling, CEO and chairman of QuickChek, in the release.

A family-owned business, QuickChek was founded in 1967 in Whitehouse Station, New Jersey, as an extension of Durling Farms, according to the release. The convenience store chain operates 157 locations in New Jersey and New York, with fuel offered at 89 of its newest stores.

Murphy USA has about 1,500 locations across 25 states in the Southwest, Southeast and Midwest regions, the release stated. Most sites are located in close geographic proximity to Walmart stores.

In separate news, Circle K convenience store chain in August piloted new cashierless checkouts to reduce friction in consumer transactions at convenience stores. The technology for the pilot will be handled by Standard Cognition, whose platform taps artificial intelligence (AI) instead of biometric data or shelf sensors.

In a September PYMNTS interview, Paytronix CEO Andrew Robbins said that although convenience stores and restaurants have seen revenues slashed by 60 percent or more, engagement and optimism are still running high. Entrepreneurs have not shied away from exploring new technology.

“It was just amazing that the sentiment I am hearing is: ‘If this is the toughest thing the world can throw at us, we can beat it,’” Robbins said.