Couche-Tard Acquires 36 Stores
LAVAL, QC, Nov. 15, 2013 /PRNewswire/ - Alimentation Couche-Tard Inc. (TSX: ATD.A ATD.B) announces today that it has signed, through its wholly-owned indirect subsidiary, Circle K Stores Inc., an agreement with Albuquerque Convenience and Retail LLC, a wholly-owned subsidiary of Phillips 66 Company, to acquire 23 stores in the state of New Mexico. The transaction is anticipated to close in December 2013. Also, Couche-Tard has signed an agreement, through Circle K Stores Inc., with Publix Super Markets Inc. to acquire 13 stores, 11 of which are located in the state of Florida and the other two in state of Georgia. This transaction is also anticipated to close in December 2013.
The transactions are subject to standard regulatory approvals and closing conditions. According to confidentiality agreements between the parties, the purchase prices cannot be disclosed. Available cash dollars will be used for the transactions.
New Mexico stores
These sites are currently operated as Circle K branded franchises. Couche-Tard's Southwest division would operate all 23 of them under the Circle K brand and continue to offer Phillips 66 branded motor fuel. Seventeen sites are equipped with car washes. Pursuant to this transaction, Couche-Tard would buy the land and buildings for 22 locations and would assume or enter into leases for the remaining location.
"Subsequent to this transaction, our network in the Southwest division would include a total of 271 company operated-stores and 6 locations under wholesale or franchise agreements. These stores occupy strategic locations within their respective trade areas. Strategically, this acquisition would be a great addition to our expansion and growth plans for the Southwest division." commented Lou Valdes, Vice-President Operations, Southwest Division.
Florida and Georgia stores
All the sites are currently operated under the PIX brand and offer fuel. The sites would be converted to the Circle K brand and sell Circle K branded fuel. Couche-Tard's Florida and Southeast divisions would operate these stores. Eight sites are equipped with car washes. Pursuant to this transaction, Couche-Tard would buy the land and buildings for eight locations and would assume or enter into leases for the other locations.
"Subsequent to this transaction, our networks in the Florida division would include a total of 414 company operated-stores and the Southeast division would include a total of 279 company operated-stores. These stores occupy strategic locations within their respective trade areas. Strategically, these acquisitions would be a great addition to our expansion and growth plans for these divisions." commented Butch Seber, Vice-President, Real Estate Development.
About Alimentation Couche-Tard Inc.
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 July 21, 2013, Couche-Tard's network comprises 6,198 convenience stores throughout North America, including 4,678 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 Couche-Tard's network and at its 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 with 2,287 stores as at July 21, 2013, 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 18,500 people work in its retail network, terminals and service offices across Europe.
In addition, under licensing agreements, about 4,200 stores are operated under the Circle K banner in ten other countries worldwide (China, Guam, Honduras, Hong Kong, Indonesia, Japan, Macau, Mexico, Vietnam and United Arab Emirates) which brings to more than 12,650 the number of sites in Couche-Tard's network.
For more information on Alimentation Couche-Tard Inc., please visit: http://www.couche-tard.com.
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.