Couche-Tard Acquires 27 Stores in Eastern Washington State
LAVAL, QC, July 18, 2012 /PRNewswire/ - Alimentation Couche-Tard Inc. (TSX: ATD.A ATD.B) announces today that it has signed, through its indirect wholly-owned subsidiary, Circle K Stores Inc., an agreement to acquire 27 stores in Eastern Washington State primarily in the "Tri-Cities" area of Pasco, Kennewick, and Richland from Sun Pacific Energy which operates under the "Sun Mart" banner. The transaction is anticipated to close in November 2012. The transaction is subject to standard regulatory approvals and closing conditions. According to a confidentiality agreement between the parties the purchase price cannot be disclosed at this time. Internal available cash dollars and available credit facilities will fund the transaction.
All stores are company-operated and 26 offer motor fuel, of which 19 are Shell branded and the other seven are Exxon branded. The Corporation expects these sites would bring a total additional volume of over 43 million gallons in motor fuel sales annually, and nearly $35 million in merchandise revenue. Three of the sites are equipped with car washes, and five have sandwich offers under the Subway or Blimpie brands. The sites will be operated by Couche-Tard's West Coast Division under the Circle K brand. Pursuant to this transaction, the Corporation would buy the land and buildings for 26 locations and would assume or enter into leases for the remaining location.
"This is a great opportunity for the West Coast Division to make an entry into a new market with very high quality assets from an outstanding and highly respected operator. I am very confident the assets, market, and team would make an immediate positive contribution to the Corporation. This transaction would bring the company-operated store count for the division to 252." commented Tim Tourek, Vice-President Operations, U.S. West Coast Division.
Alimentation Couche-Tard Inc. is the leader in the Canadian convenience store industry. In North America, Couche-Tard is the largest independent convenience store operator (whether integrated with a petroleum Corporation or not) in terms of number of company-operated stores. As of April 29, 2012, Couche-Tard had a network of 5,803 convenience stores, 4,216 of which include motor fuel dispensing. At the same date, the Corporation had agreements for the supply of motor fuel to 350 sites operated by independent operators. Couche-Tard's network consists of 13 business units, including nine in the United States covering 42 states and the District of Columbia, and four in Canada covering all ten provinces. In addition, under licensing agreements, about 3,990 stores are operated under the Circle K banner in nine other countries worldwide (China, Guam, Hong Kong, Indonesia, Japan, Macau, Mexico, Vietnam and United Arab Emirates). More than 60,000 people are employed throughout Couche-Tard's retail convenience network and service centers in North America.
Following its acquisition of Statoil Fuel & Retail in June 2012, Couche-Tard also operates a broad retail network across Scandinavia, Poland, the Baltics, and Russia with approximately 2,300 stores, the majority of which offer full and convenience products while the others are automated (fuel only) stations. Throughout our European operations, Couche-Tard also generates revenues from stationary energy, marine fuel, aviation fuel, lubricants and chemicals. It operates 12 key terminals as well as 38 depots in eight countries while it also operates approximately 400 road tankers. Including employees at Statoil branded franchise stations, about 18,500 people work in Couche-Tard's retail network across Europe, in its European corporate headquarters, in its eight regional headquarters, in its terminals and in its depots.
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 "plan", "evaluate", "estimate", "believe", "expect" and other related expressions are used to identify such statements. Couche-Tard would like to point out that, by their very natures, 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 projections. 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.