Photo: Kum & Go
(Ames, IA) -- The sale of Iowa-based Kum & Go is a good move for the buyer, Utah-based Maverik -Adventure's First Stop, according to Iowa State University Associate Professor Manjote Bhussar.
He says the Kum & Go purchase will allow the buyer to establish a footprint in the Midwest. Maverik, owned by F J Management. has properties in about a dozen western states. Bhussar says such acquisitions may be attractive right now due to the rising cost of borrowing money. He says rising costs are leading to companies to seek ways to cut costs in order to improve profitability. Bhussar notes larger companies tend to operate more efficiently because of economies of scale, and a lower per unit cost of doing business. He also notes Kum & Go is likely seen as a good way for Maverik, to expand it's footprint with a convenience store chain with a good reputation, solid customer base, and stores in good locations.
The Utah-based convenience store chain announced last Friday it was buying Kum & Go. No word on the terms of the sale, or if the Kum & Go stores will be rebranded. Kum & Go was started in Hampton, Iowa in 1959. It has nearly 400 locations in 13 states.
Bhussar says convenience store chains are also making plans for more electric vehicles, by installing charging stations. He says one example of how companies are trying to be ready is by offering an even larger selection of food items available while customers charge their vehicles.