Southern convenience chain Murphy USA buying QuickChek for $645M in cash

Murphy USA, a Southern gasoline and convenience chain, has agreed to acquire Whitehouse Station-based QuickChek Corp. for $645 million in cash, the two companies announced Monday.

QuickChek, a family-owned business known for its award-winning coffee, has 157 stores in New Jersey and the New York metro area.

“QuickChek and Murphy USA both reflect a family heritage and a strong people culture,” QuickChek Chairman and CEO Dean Durling said in a prepared statement. “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.”

Murphy is a Fortune 500 retailer that operates retail gasoline stations in close proximity to Walmart stores in the Southwest, Southeast and Midwest, as well as standalone Murphy Express stores.

“In October, we outlined an updated capital allocation strategy and committed to improving our food and beverage offer at existing and future sites,” Murphy USA CEO and President Andrew Clyde said in a statement. “This transaction greatly accelerates those efforts and benefits.”

The transaction includes a $20 million in expected tax benefits, for a net after-tax purchase price of $625 million, Murphy noted. The chain will finance the deal with a combination of cash, existing credit and new debt, including committed financing from the Royal Bank of Canada.

The transaction is expected to close in the first quarter, subject to customary conditions and approvals.

RBC Capital Markets LLC served as exclusive financial adviser to Murphy USA, while Davis Polk & Wardwell LLP acted as legal adviser. BofA Securities Inc. was QuickChek’s exclusive financial adviser, while Weil, Gotshal & Manges LLP was its legal adviser.