PHOENIX, Ariz. -- Alimentation Couche-Tard Inc. said last week that it has signed, through one of its subsidiaries, an agreement to acquire from BP West Coast Products LLC its fuel terminal facilities located in Phoenix, Ariz. The transaction is anticipated to close in the first quarter of 2010 and is subject to standard regulatory approvals and closing conditions. According to a confidentiality agreement, the parties did not disclose the purchase price.
The terminal facilities include 16 aboveground storage tanks with a storage capacity of 220,000 thousand barrels and [image-nocss] which is permitted for 44,000 barrels per day and has access to petroleum products from West Texas/Gulf Coast as well as from the West Coast.
"The Phoenix Terminal is an excellent asset with outstanding employees who manage a very high-quality operation. Strategically, this acquisition will add efficiencies in our fuel supply chain servicing our retail network in the Greater Maricopa County area in Arizona," said Geoffrey Haxel, vice president of operations for the Laval, Quebec-based company's Arizona Division.
Internal available cash dollars will pay for the transaction, the company said.
For its second quarter, Couche-Tard just announced net earnings down almost 10% to $88.2 million, mainly a result of a 9.10-cent-per-gallon decrease in motor-fuel gross margins in the United States, an estimated impact of more than $65 million before income taxes. (Click here for previous CSP Daily News coverage.)
In North America, Couche-Tard currently operates a network of 5,904 convenience stores, 4,128 of which include motor fuel dispensing, located in 11 large geographic markets, including eight in the United States covering 43 states and the District of Columbia, and three in Canada covering all 10 provinces. It primarily flies the Circle K banner in the United States and the Mac's banner in Canada. More than 52,000 people are employed throughout Couche-Tard's retail convenience network and service centers.
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