LAVAL, QC, June 20, 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 Eesti AS, an agreement to purchase majority of the assets operated under the Premium 7® brand from Sevenoil Est OÜ and its affiliates. The assets are comprised of 23 sites, including 11 full service fuel stations with convenience stores and 12 automated fuel stations. The transaction is anticipated to close in the second 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.
Couche-Tard would buy the land and buildings for 23 locations. Following the acquisition, all the sites would be operated under the Statoil brand and within a year rebranded and operated under the Circle K® brand by Couche‑Tard's Estonian business unit.
"This acquisition would be a great addition to Couche-Tard's expansion and growth plans in Europe. Having just added Ireland to our European network and expanded our footprint in Scandinavia with Shell's retail network in Denmark, Couche-Tard's declaration in 2012 is becoming a reality: Circle K Europe (formerly Statoil Fuel & Retail AS) is our platform for growth in Europe," says Jacob Schram, Group President Europe, Couche-Tard.
"Subsequent to this transaction, Couche-Tard's network in Estonia would grow by 40% and would total 77 company operated-stores and fuel stations. These sites occupy strategic locations within their respective trade areas. This acquisition would be a great complement to our existing network in the Estonian fuel market," commented Jørn Madsen, EVP Central & Eastern Europe & Ireland, Circle K Europe.
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 and Baltic countries with a significant presence in Poland.
As of January 31, 2016, Couche-Tard's network comprised 7,979 convenience stores throughout North America, including 6,560 stores offering road transportation fuel. Its North‑American network consists of 15 business units, including 11 in the United States covering 41 states and four in Canada covering all ten provinces. About 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 and Denmark), Poland, the Baltics (Estonia, Latvia and Lithuania) and Russia. As of January 31, 2016, it comprised 2,218 stores, the majority of which offer road transportation fuel and convenience products while the others are unmanned automated fuel stations. Couche-Tard also offers other products, including stationary energy, marine fuel and chemicals. Couche-Tard operates key fuel terminals and fuel depots in six European countries. Including employees at franchise stations carrying its brands, about 19,000 people work in its retail network, terminals and service offices across Europe. Since its acquisition of Topaz Energy Group Limited on February 1st, 2016, Couche-Tard also operates a convenience and fuel retailing network comprised of 444 service stations in Ireland as well as a significant commercial fuels operation, with over 30 depots and two terminals.
In addition, around 1,500 stores are operated by independent operators under the Circle K banner in 13 other countries or regions worldwide (China, Costa Rica, Egypt, Guam, Honduras, Hong Kong, Indonesia, Macau, Malaysia, Mexico, the Philippines, the United Arab Emirates and Vietnam).
For more information on Alimentation Couche-Tard Inc., please visit: http://corpo.couche-tard.com.
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.