Murphy USA Marks First Anniversary of QuickChek Acquisition – CSNews Online

Share Article

EL DORADO, Ark. — One year after adding the QuickChek convenience store chain to its network, Murphy USA Inc. is certain that the $656-million acquisition was the right fit for the company.
“As we have begun to incorporate Murphy’s scale and thoughtful approach to business transformation, our excitement regarding the future potentials for both the Murphy and QuickChek brands continues to grow,” Murphy USA President and CEO Andrew Clyde said during the retailer’s fourth-quarter 2021 earnings call, held Feb. 3.
“Moreover, our confidence that we made the right acquisition of QuickChek has been validated through our due diligence of other M&A opportunities — none of which had the same quality of assets, the existing earnings power, or the future potential we see in QuickChek,” he added.
Murphy USA completed its purchase of Whitehouse Station, N.J.-based QuickChek on Jan. 29, 2021. Through the deal, it added 157 convenience stores in the Northeast to its portfolio and brought its total station count to more than 1,650 locations.
From a synergy perspective, Murphy USA achieved more than $8 million in synergies in 2021, tracking ahead of its target of $28 million over a three-year timeframe. Most of the synergies in year one were embedded in the company’s $1.1 billion of total fuel contribution dollars, according to Clyde.
“The fuel synergies have come primarily from implementing the same principles we leverage in our retail pricing excellence initiative within the Murphy network, better understanding store-by-store demand elasticity and QuickChek’s footprint, and optimizing pricing tactics accordingly,” he explained.
El Dorado-based Murphy USA has also been able to lock down more favorable terms in renegotiating fuel supply contracts, while leveraging inventory management technology with its fuel carriers, the chief executive noted. 
Murphy USA also achieved $2 million in general and administrative synergies. Its assessment of direct and reverse merchandise, and food and beverage synergies, remain backend weighted, but the opportunity set is growing, Clyde said.
“We have undertaken some important strategic work to better understand market dynamics, consumer preferences, and demand segments. This work helps to inform what we can and should do with the Murphy brand and as importantly, what we shouldn’t do, as well as identifying the greatest opportunities that exist within the QuickChek brand,” he said. 
Murphy USA has stores in 27 states, primarily in the Southwest, Southeast, Midwest and Northeast United States. The majority of its stores are located in close proximity to Walmart Supercenters. 
For 2022, the retailer’s growth strategy includes up to 45 new stores — including seven QuickChek locations — and 35 raze-and-rebuilds. 

source

You might also like

Surviving 2nd wave of corona
COVID-19

Surviving The 2nd Wave of Corona

‘This too shall pass away’ this famous Persian adage seems to be defeating us again and again in the case of COVID-19. Despite every effort

@voguewellness