Murphy USA to Buy QuickChek for $645 Million

The Arkansas fuel retailer will expand its reach with the New Jersey chain’s 157 c-stores.

December 14, 2020

EL DORADO, Ark. and WHITEHOUSE STATION, N.J.—Murphy USA, which operates gas stations under the Murphy USA and Murphy Express brands, has agreed to acquire family-owned QuickChek Corp. and its 157 c-stores in an all-cash deal for $645 million, the companies announced today.

QuickChek, founded in 1967 and based in Whitehouse Station, N.J., is a family-owned company that operates c-stores, including 89 locations with fuel, throughout New Jersey, New York’s Hudson Valley and Long Island.

In October, QuickChek was named among the top 10 in USA Today’s Best Gas Station Brand list. In August, the c-store announced a delivery deal with DoorDash to deliver its complete foodservice menu and provide contactless payment to customers in New Jersey and New York.

In announcing the deal, Murphy USA, whose gas stations are primarily located near Walmart stores, cited QuickChek’s robust per-store per-year merchandise sales of $3.5 million, combined merchandise margins of 38% with food and beverage representing more than 50% of the mix, and per-store per-year fuel gallons of 3.8 million. Additionally, QuickChek has a proven history of same-store-sales growth and a rich real-estate pipeline to sustain unit growth within its existing footprint, Murphy USA said.

“In October we outlined an updated capital allocation strategy and committed to improving our food and beverage offer at existing and future sites,” said Murphy USA President and CEO Andrew Clyde in a press release. “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. The transaction is also expected to create direct synergies that leverage our enterprise scale and our distinctive capabilities in fuel, tobacco and loyalty. We are excited to join forces with an exceptional and highly engaged team at QuickChek who share Murphy USA’s passion for delivering excellence every day to all our stakeholders.”

QuickChek CEO and Chairman Dean Durling said, “QuickChek and Murphy USA both reflect a family heritage and a strong people culture. 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 deal is expected to close during the first quarter of 2021, subject to customary closing conditions and regulatory approval. RBC Capital Market, LLC acted as exclusive financial adviser, and Davis Polk & Wardwell LLP acted as legal advisor to Murphy USA. BofA Securities Inc. acted as exclusive financial adviser and Weil, Gotshal & Manges LLP acted as legal adviser to QuickChek.

The purchase price includes expected tax benefits valued at $20 million for a net after-tax purchase price of $625 million. The transaction will be financed with a combination of cash on hand, existing credit facilities and new debt, and Murphy USA has obtained committed financing from the Royal Bank of Canada.

Murphy USA is a leading retailer of gasoline and convenience merchandise with nearly 1,500 sites located primarily in the Southwest, Southeast and Midwest U.S. The company and its team of nearly 10,000 employees serve an estimated 1.7 million customers each day through its network of retail gasoline stations in 25 states. The majority of Murphy USA’s sites are located near Walmart stores. The company also markets gasoline and other products at standalone stores under the Murphy Express brand.

QuickChek is a market leader in foodservice, providing local one-stop shopping where consumers can enjoy made-to-order subs and sandwiches, fresh-brewed coffee, healthy snacks and salads, hot breakfast and more. QuickChek enables consumers to place a mobile order through the QuickChek Rewards app where you’ll earn rewards for future savings; have their order ready through curbside pickup; use in-store self-checkout counters to get them on their way safe and fast; or have their order delivered through DoorDash and Grub Hub.

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