DES MOINES, Iowa—Yesway, the Iowa-based chain, has completed the private placement of an additional $235 million of equity, which will be used for an extensive raze-and-rebuild and store remodel campaign, plus more acquisitions. The new funding will be used to expand the Yesway/Allsup's brand, according to PetrolPlaza.com.
Brookwood Financial Partners, the private equity firm that founded Yesway, has raised over $642 million in equity capital for its Yesway affiliate in addition to arranging over $237 million in sale-leaseback proceeds. Yesway acquired the Allsup’s chain in 2019, and currently has more than 400 outlets, with plans to grow to 600-plus in the next few years.
“As part of our integration of Allsup's, we have identified over $135 million in real-estate capital projects within the portfolio, including razing and rebuilding 27 existing Allsup's stores, performing targeted upgrades to over 100 additional Allsup's stores, converting several existing Yesway stores in Texas to the Allsup's brand, significantly upgrading many of our existing Yesway-branded stores and adding new to market stores in communities which we have determined could benefit from an Allsup's store,” said Tom Trkla, chairman and CEO, Yesway.
Already, the company has completed over 100 raze and rebuilds of existing Allsup's stores, increasing the store size from an average of 2,400 square feet to more than 4,800. That increase allows the stores to add more in-store merchandise and private label product offerings and, in most cases, to increase in the number of diesel and gasoline fueling stations.
The chain has also completed technology upgrades worth over $7 million to all Allsup's stores, including the installation of a state-of-the-art PDI back office software system.