Allsup’s stores will continue operating under that well-known name and no store closures or employee layoffs are expected, according to the chief executive officer of the company that plans to buy all 304 Allsup’s stores in New Mexico, West Texas and Oklahoma.
“We value the Allsup’s name, its legacy and what it means in the communities it serves,” said Thomas Nicholas Trkla, CEO and chairman of Yesway. “Continuing to support the Allsup’s brand is a priority for us, and our plan is to expand Allsup’s in new markets as we continue to grow our portfolio.”
Trkla added that Mark Allsup will continue to serve as president of Allsup’s Convenience Stores, while Barbara Allsup, now vice president of finance, will remain to assist with the integration of the two companies.
“We are so honored that Barbara and Mark Allsup have chosen us to serve as the custodian of their legacy,” Trkla said. “And of course, we are definitely keeping the world-famous Allsup’s Burrito!”
In a Tuesday announcement of the sale agreement, Trkla credited the Allsup family business with being first among convenience store chains to offer hot food, self-service gasoline and 24-hour service.
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No definite time for the sale completion has been given, as it requires regulatory approval. A question about the value of the transaction was not answered.
According to Yesway’s announcement, Goldman Sachs is serving as the financial advisor to Yesway for the sale, and Goldman Sachs and RBC will arrange for the financing.
Yesway is based in Des Moines, Iowa, and Abilene, Texas. It is owned by BW Gas & Convenience Holdings LLC, an affiliate of the private equity investment firm Brookwood Financial Partners LLC of Massachusetts.
According to various industry publications, Yesway has been engaged in an aggressive growth strategy for several years, focusing on communities with populations of about 5,000 to 50,000. It has a store in San Jon, New Mexico, which is in Quay County.
The company indicates that it has purchased more than 150 convenience stores during the past three years in Iowa, Texas, New Mexico, Oklahoma, Kansas, Missouri, Nebraska, South Dakota and Wyoming, and that it plans to own 500 convenience stores within a few years. Yesway started in December 2015 with 10 stores, and ranks sixth on the 2019 Top Growth Chains list compiled by Convenience Stores News.
Lonnie and Barbara Allsup opened their first drive-through store in Roswell in 1956. They had 12 stores in three cities by the time they sold the chain in 1963 to Southland Corp., which operated as 7-11. Because of a non-compete agreement, they moved to Clovis to launch a new Allsup’s endeavor in 1964, which grew to its current 304 locations in three states. Lonnie Allsup passed away in January 2018.
Neither Mark or Barbara Allsup were available for questions Wednesday, but they said in the press announcement that they chose to sell to Yesway because they think its values align with Allsup’s Convenience Stores.
“They share our commitment to support the local communities we serve, our unwavering pledge to our customers to provide them with a terrific shopping experience,” said Mark Allsup, “and our dedication to the success and well-being of our employees.”
Senior Writer Lisa Dunlap can be reached at 575-622-7710, ext. 311, or at email@example.com.