ATD.A, ATD.B / TSX
LAVAL, QC, Aug. 16, 2011 /PRNewswire/ - Alimentation Couche-Tard Inc. announces today that it has signed, through its wholly-owned indirect subsidiary, Circle K Stores Inc., an agreement to acquire 33 stores in Southern Louisiana from ExxonMobil which operates under the "On the Run" banner. The transaction is anticipated to close in December 2011. 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 will fund the transaction.
The stations will retain the Exxon gasoline brand, allowing customers to continue to purchase the same high quality Exxon fuel and use their ExxonMobil credit cards and Speedpass devices. The Corporation expects that these sites would bring a total additional volume of 85 million gallons in motor fuel sales. These locations would be operated by the Corporation's Gulf Division under the Circle K brand. Pursuant to this transaction, the Corporation would buy the land and buildings for 27 locations and would assume or enter into leases for the remaining locations.
"Subsequent to this transaction, our network in the Circle K Gulf Division would include a total of 318 company operated-stores. These stores are located on highly visible and well-traveled roads and occupy strategic locations within their respective trade areas. Strategically, this acquisition would be a complement to our expansion and growth plans for the Gulf Division." commented Jason Broussard, Vice-President Operations, Gulf 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 company or not) in terms of number of company-operated stores. Couche-Tard's network is comprised of 5,795 convenience stores, 4,128 of which include motor fuel dispensing, operated by 13 business units, including nine in the United States covering 43 states and the District of Columbia, and four in Canada covering all ten provinces. More than 53,000 people are employed throughout Couche-Tard's retail convenience network and service centers.
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.