LAVAL, QC, March 16, 2015 /CNW Telbec/ - 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 with Cinco J, Inc. (doing business as Johnson Oil Company), Tiger Tote Food Stores and their affiliates to acquire 21 stores, 151 dealer fuel supply agreements and five development properties. The 21 stores and development properties are located in the State of Texas whereas the 151 dealer fuel supply agreements are located in the States of Texas, Mississippi and Louisiana. The transaction is anticipated to close by the end of Couche-Tard's first fiscal quarter which ends July 19, 2015, and is subject to standard regulatory approvals and closing conditions. The parties have signed a confidentiality agreement precluding the parties from disclosing the purchase price for this acquisition at this time. Available cash dollars will pay for the transaction.
These convenience stores operate under the store brands "The Tote" and "Tiger Tote" and offer Exxon and Chevron branded motor fuels, whereas the branded dealer business offers Chevron, Shell, Texaco, Valero, Exxon and Citgo fuel brands. As a result of the transaction, Couche-Tard plans on keeping the existing fuel brands and would buy the land and buildings for 18 locations and would assume or enter into a lease for the three remaining locations. Following the acquisition, all of the stores would be operated under the Circle K brand by Couche-Tard's Southwest Division.
"Subsequent to this transaction, Couche-Tard's network in the Circle K Southwest Division would include a total of 335 company operated-stores and 67 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, Southwest Division.
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 and Baltic countries while it has a significant presence in Poland.
As of October 12, 2014, Couche-Tard's network comprised 6,303 convenience stores throughout North America, including 4,851 stores with road transportation fuel dispensing. Its North-American network consists of 13 business units, including nine in the United States covering 40 states and four in Canada covering all ten provinces. More than 60,000 people are employed throughout its network and at the 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, which comprised 2,239 stores as of October 12, 2014, 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 17,500 people work in its retail network, terminals and service office across Europe.
In addition, about 4,600 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 13,100 the number of sites in our network.
For more information, please visit: http://corpo.couche-tard.com/en
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 "believe", "could", "should", "intend", "expect", "estimate", "assume" 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 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.
For further information:
Raymond Paré, Vice President and Chief Financial Officer
Tel: (450) 662-6632 extension 4607