LAVAL, QC, Oct. 14, 2015 /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 all the assets operated under the Texas Star brand from Texas Star Investments, Inc. and its affiliates. The assets are comprised of 18 convenience stores, two free-standing Subway stores and a dealer fuel supply network located in the southern part of State of Texas. The transaction is anticipated to close in the second half of Couche-Tard's fiscal year 2016 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 operate under the store brand Texas Star and offer Shell and CITGO branded motor fuels. As a result of the transaction, Couche-Tard plans on keeping the existing fuel brands and would buy the land and buildings for 17 locations and would assume or enter into a lease for the one remaining location.
Following the acquisition, all of the stores would be operated under the Circle K brand by Couche‑Tard's U.S. Southwest Division.
“Subsequent to this transaction, Couche-Tard's network in the Circle K Southwest Division would include a total of 356 company operated-stores and 157 locations under wholesale or franchise agreement. 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 Southwest Division.” commented Kelly McGuire, Vice-President Operations, U.S. Southwest Division.
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 Scandinavia and the Baltic countries with a significant presence in Poland.
As of July 19, 2015, Couche-Tard's network comprised 7,987 convenience stores throughout North America, including 6,556 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 at July 19, 2015, it comprised 2,229 stores, 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, lubricants and chemicals. Couche-Tard operates key fuel terminals and fuel depots in six countries. Including employees at Statoil branded franchise stations, about 19,000 people work in its retail network, terminals and service offices across Europe.
In addition, about 4,700 stores are operated by independent operators under the Circle K banner in 12 other countries or regions worldwide (China, Guam, Honduras, Hong Kong, Indonesia, Japan, Macau, Malaysia, Mexico, the Philippines, the United Arab Emirates and Vietnam) which brings to more than 14,900 the number of sites in Couche-Tard's network.
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.