Kum & Go officially sells
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The sale of Des Moines-based Kum & Go to Maverik — Adventure's First Stop was finalized Tuesday, company spokesperson Erica Turner tells Axios.
Why it matters: The 400+-store deal roughly doubles Maverik's footprint, making it the nation's 12th largest convenience store chain.
- And it marks a significant transition for the Krause Group — Kum & Go's now-former parent company — whose real estate arm is trying to broker a $500 million downtown DSM development deal that includes a soccer stadium.
Catch up fast: Kum & Go, which opened almost 65 years ago, has locations in 13 states and employs roughly 5,000 people.
- The amount of the deal was not disclosed but was valued at as much as $2 billion in February, Reuters reported.
- Utah-based Maverik also purchased a tank truck carrier company, Solar Transport, from Krause Tuesday.
What's happening: Maverik is opening a DSM office where about 250 Kum & Go and Solar employees that currently work from Krause Gateway Center (KGC) will be relocated, Maverik CEO Chuck Maggelet tells Axios.
- The details about that location and a timeline for the transition haven't been announced, he says.
Meanwhile, there could be some employee downsizing as the companies merge, which Maggelet described as "limited."
- Kum & Go's in Utah, Idaho, Colorado and in Wyoming and will be rebranded as Maverik stores. Iowa rebranding is still under consideration, he says.
State of play: Krause Group still owns nine other companies.
- There are no plans to sell or vacate KGC, the nearly all-glass exterior six-story office building constructed about five years ago, CEO Kyle Krause tells Axios.
What's next: Negotiations with local governments to close a funding gap in the $95 million soccer stadium project are ongoing, per Krause.
- If the project moves forward, the stadium would be owned by the nonprofit Iowa Soccer Development Foundation. Its roughly 100 associates would work out of the KGC, he said.
Of note: Krause and his wife, Sharon, have pledged $23 million to the soccer stadium.