LAVAL, Quebec -- Alimentation Couche-Tard Inc. will rebrand its 24 newest sites in Florida to its Circle K brand once the deal closes this fall. The Laval, Quebec, announced yesterday, as reported in a CSP Daily News Flash, that it has signed through its subsidiary, Circle K Stores Inc., an agreement to purchase 24 stores in West Central Florida from Sparky's Oil Co.
These stores are located on highly visible and well-traveled roads and occupy strategic locations within their respective trade area, Mick Parker, vice president of operations, for [image-nocss] Circle K's Florida-Gulf Division, said in a press release. Strategically, this acquisition would be an excellent fit with our current network in West Central Florida market and would complement our expansion and growth plans in the Florida-Gulf region.
Should the transaction close as expected in October 2006, these assets would add to Couche-Tard's revenues and contribute to its earnings on an annualized basis, according to the company. And subsequent to the closing, Circle K's Florida-Gulf Division will include a total of 570 stores.
The 24 convenience stores currently operate under the Sparky's banner and are all company-operated. Twenty-three of the stores have Shell-branded gasoline and one store is unbranded. There are seven drive-thru car washes at the locations. In addition, 17 of the stores have quick-service restaurants branded Subway (15) and Hungry Howies Pizza (1), both of which are operated under franchise agreements. Sparky's also operates one proprietary deli.
The stores will be converted to the Circle K banner, and the gas brands will remain intact. Couche-Tard plans to buy the land and buildings for four locations and lease the other 20. Trefethen & Co. LLC served as financial advisor to Couche-Tard.
The transaction is subject to standard regulatory approvals and closing conditions. Plant City, Fla.-based Sparky's total sales for 2005 were about $83.9 million. 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.
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