Alimentation Couche-Tard Inc. acquires 55 Stores in the state of Illinois and state of Indiana
LAVAL, QC, July 29, 2014 /PRNewswire/ - Alimentation Couche-Tard Inc. (hereinafter referred to as "Couche-Tard") (TSX: ATD.A ATD.B) announces today that it has signed, through its wholly-owned indirect subsidiary, Mac's Convenience Stores LLC, an agreement to acquire 55 stores and related assets from Tri Star Marketing, Inc. and affiliates (hereinafter collectively referred to as the "Parties") of which 51 stores located in the state of Illinois and four stores located in the state of Indiana. These stores are currently operating under the brand Super Pantry and offer Phillips 66 and Mobil branded motor fuel. In addition, the Parties have signed a confidentiality agreement whereby precluding the Parties from disclosing the purchase price for this acquisition at this time.
As a result of the transaction, Couche-Tard plans on keeping the existing fuel brands and would buy the land and buildings for 54 locations and would assume or enter into a lease for the single remaining location. Couche-Tard will also acquire three Bulk Plant facilities located in the state of Illinois and state of Indiana.
Following the acquisition, all of the stores will be operated under the Circle K brand by Couche-Tard's Midwest Division.
The transaction is anticipated to close before the end of Couche-Tard's second quarter which is scheduled for October 12, 2014, and is subject to the standard regulatory approvals and closing conditions. Available cash dollars will pay for the transaction.
According to Jon Stewart, President and CEO of Tri Star Marketing, Inc. a third generation family business based in Champaign, Illinois whose family has led the Super Pantry business for the last 67 years, commented "I am personally excited about this transaction, the addition of Super Pantry to Couche-Tard's network of convenience stores will complement its leadership position under the Circle K brand. It is a true win for both consumers and shareholders of both organizations"
"Subsequent to this transaction, Couche-Tard's network in the Circle K Midwest Division would include a total of 600 company operated-stores and 193 locations under wholesale or franchise agreement. These stores occupy strategic locations within their respective trade areas. This acquisition would be a great addition to Couche-Tard's expansion and growth plans for the Midwest Division." commented Bruce Landini, Vice-President Operations, Midwest Division.
Couche-Tard is the leader in the Canadian convenience store industry. In the United States, it is the largest independent convenience store operator in terms of number of company-operated stores. In Europe, Couche-Tard is a leader in convenience store and road transportation fuel in Scandinavian countries and in the Baltic States while it has a growing presence in Poland.
As of April 27, 2014, Couche-Tard's network comprised 6,241 convenience stores throughout North America, including 4,756 stores with road transportation fuel dispensing. Its North-American network consists of 13 business units, including nine in the United States covering 39 states and the District of Columbia and four in Canada covering all ten provinces. More than 60,000 people are employed throughout its network and at the service offices in North America.
In Europe, Couche-Tard operates a broad retail network across Scandinavia (Norway, Sweden, Denmark), Poland, the Baltics (Estonia, Latvia, Lithuania) and Russia, which comprised 2,258 stores as at April 27, 2014, the majority of which offer road transportation fuel and convenience products while the others are unmanned automated service-stations which offer road transportation fuel only. The Corporation also offers other products, including stationary energy, marine fuel, aviation fuel, lubricants and chemicals. Couche-Tard operates key fuel terminals and fuel depots in eight countries. Including employees at Statoil branded franchise stations, about 17,500 people work in its retail network, terminals and service offices across Europe.
In addition, under licensing agreements, about 4,600 stores are operated under the Circle K banner in 12 other countries worldwide (China, Guam, Honduras, Hong Kong, Indonesia, Japan, Macau, Malaysia, Mexico, Philippines, Vietnam and United Arab Emirates) which brings to more than 13,100 the number of sites in Couche-Tard's network.
The statements set forth in this press release, which describes Couche-Tard's objectives, projections, estimates, expectations or forecasts, may constitute forward-looking statements within the meaning of securities legislation. Positive or negative verbs such as "believe", "could", "should", "intend", "expect", "estimate", "assume" and other related expressions are used to identify such statements. Couche-Tard would like to point out that, by their very nature, forward-looking statements involve risks and uncertainties such that its results, or the measures it adopts, could differ materially from those indicated or underlying these statements, or could have an impact on the degree of realization of a particular projection. Major factors that may lead to a material difference between Couche-Tard's actual results and the projections or expectations set forth in the forward-looking statements include the effects of the integration of acquired businesses and the ability to achieve projected synergies, fluctuations in margins on motor fuel sales, competition in the convenience store and retail motor fuel industries, exchange rate variations, and such other risks as described in detail from time to time in the reports filed by Couche-Tard with securities authorities in Canada and the United States. Unless otherwise required by applicable securities laws, Couche-Tard disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking information in this release is based on information available as of the date of the release.
SOURCE Alimentation Couche-Tard Inc.