Couche-Tard buys 53 sites in Louisiana
LAVAL, QC, Aug. 29, 2016 /PRNewswire/ - Alimentation Couche-Tard Inc. ("Couche-Tard") (TSX: ATD.A ATD.B) announces today that it has signed, through its wholly‑owned indirect subsidiary Circle K Stores Inc., an agreement to purchase 53 sites held by American General Investments, LLC and North American Financial Group, LLC (together, "Cracker Barrel"). These sites are located primarily in the Baton Rouge market in Louisiana. The transaction is anticipated to close in the third quarter of Couche-Tard's fiscal year 2017 and is subject to the standard regulatory approvals and closing conditions. The acquisition will be financed from Couche-Tard's available cash and existing credit facilities. The parties have agreed not to disclose the purchase price for this acquisition.
These convenience stores currently operate under the store brand Cracker Barrel and include 12 quick service restaurants. All but one of the sites offer branded motor fuels under the Shell, Chevron or Cracker Barrel brand names. Of the 53 sites, Couche-Tard would own the land and building for 47 locations and would assume or enter into leases for the remaining 6 locations.
Following this acquisition, all of the stores would be rebranded and operated under the Circle K brand by Couche‑Tard's U.S. Division of the Gulf Coast Region.
"Subsequent to this transaction, Couche-Tard's network in the Circle K Division of the Gulf Coast Region would include a total of 638 company operated-stores, 8 company owned and dealer operated and 54 dealer owned and operated. 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 Gulf Division." commented Brian Bednarz, Vice President Operations, U.S. Division of the Gulf Coast Region.
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 retail in the Scandinavian countries (Norway, Sweden and Denmark), in the Baltic States (Estonia, Latvia and Lithuania) and in Ireland with an important presence in Poland.
As of April 24, 2016, Couche-Tard's network comprised 7,888 convenience stores throughout North America, including 6,490 stores with road transportation fuel dispensing. Its North American network consists of 15 business units, including 11 in the United States covering 41 states and 4 in Canada covering all 10 provinces. Approximately 80,000 people are employed throughout its network and at its service offices in North America.
In Europe, Couche-Tard operates a broad retail network across Scandinavia (Norway, Sweden, Denmark), Ireland, Poland, the Baltics States (Estonia, Latvia, Lithuania) and Russia through ten business units. As of April 24, 2016, Couche-Tard's network is comprised of 2,659 stores, the majority of which offer road transportation fuel and convenience products while the others are unmanned automated fuel sites which only offer road transportation fuel. Couche-Tard also offers other products, including stationary energy, marine fuel, aviation fuel, lubricants and chemicals. Including employees at its branded franchise stores, approximately 25,000 people work in its retail network, terminals and service offices across Europe.
In addition, under licensing agreements, almost 1,500 stores are operated under the Circle K banner in 13 other countries and territories worldwide (China, Costa Rica, Egypt, Guam, Honduras, Hong Kong, Indonesia, Macau, Malaysia, Mexico, the Philippines, the United Arab Emirates and Vietnam), which brings the total network to over 12,000 stores.
For more information on Alimentation Couche-Tard Inc., please visit: http://corpo.couche‑tard.com.
Forward-Looking Statements
The statements set forth in this press release, which describe 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 "will", "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 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 documents filed by Couche-Tard with securities regulatory authorities in Canada. 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 press release is based on information available as of the date of the release.
SOURCE Alimentation Couche-Tard Inc.
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