MONROE, La. -- They say timing is everything, and that is the case for James Moore Jr., who after nearly three decades as the leader of Moore Oil Co. in Monroe, La., is saying goodbye to the petroleum retailing industry. Moore announced yesterday, as reported in a CSP Daily News Flash, that he is selling his 24-store Stop N Save convenience store chain to the Circle K Stores subsidiary of Canadian powerhouse Alimentation Couche-Tard Inc.
The timing seemed to be right. The industry has had two pretty good years back to back and if there's a time to sell [image-nocss] something, it's when things are going pretty good, Moore told CSP Daily News. [The company's] had two good years, the industry's been good, times are good, and I think there's a lot of liquidity out there. All those factors indicated to me that there was a good opportunity, and I was impressed with the Couche-Tard people.
Moore Oil goes back to the 1940s, when Walter Kellogg started the Kellogg Oil Co. as an Amoco jobber. Moore's father, James Moore Sr., bought the company in 1961, upon Kellogg's retirement. Moore Jr., who had been working for the company, took over after his father died in 1977. The company also includes a wholesale operation, which Moore said is being sold through a separate transaction.
Any time you've been doing something for this length of time, you always have mixed emotions, Moore said about exiting the industry and trying his hand at real estate development. My father did this before me, but I think you always have to be optimistic, and sometimes change is a good thing. I'm looking forward to the change and looking to some bigger and better challenges out there and just focusing my energy in a different direction.
Moore's fuel volume for 2005 was about 32 million gallons, generating revenues on the fuel sales of about $60 million on which a commission is paid to the dealers for their portion of the fuel sales.
The 24 c-stores currently operate under the Stop-n-Save banner; six are company-operated stores, one is currently under construction and 17 are dealer-operated locations. Fifteen of the stores have Shell-branded gasoline, three Exxon, one Chevron and five are unbranded. There are 12 drive-thru car washes at the locations.
The company-operated stores will be converted to the Circle K banner and the gasoline brands will remain intact. In addition, 10 of the stores have quick-service restaurants branded Subway and Quizno's, both of which are operated under franchise agreements. Space at one store is leased to a KFC franchisee.
Pursuant to this transaction, the company would buy the land and buildings for 20 locations and would lease the other four. Trefethen & Co. LLC served as financial advisor to Couche-Tard, and Moore Oil Co. was represented by Pete & John Stribling of Stribling Realty Corp., Jackson, Miss.
"Subsequent to this transaction, our network in the Florida-Gulf Division would include a total of 545 stores with 146 located in the Louisiana market, said Mick Parker, vice president of operations for Circle K's Florida-Gulf Division. These stores are located on highly visible and well-traveled roads and occupy strategic locations within their respective trade area. Strategically, these acquisitions would be an excellent fit with our current network in the Northern Louisiana market and would complement our expansion and growth plans in both the Louisiana and Florida-Gulf region.
The transaction, subject to standard regulatory approvals and closing conditions, is expected to close in July 2006. According to a confidentiality agreement between the parties, the purchase price cannot be disclosed at this time. Internal available cash dollars will pay for the transaction.
Laval, Quebec-based Couche-Tard currently operates a network of 4,983 convenience stores, 3,085 of which include motor fuel dispensing, located in eight large geographic markets, including three in Canada and five in the United States covering 23 states.
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