Once the transaction with Empire is completed, Couche-Tard will have added 1,263 sites to its North American network because of the CST acquisition, for a value of approximately $3.7 billion.
Since April 24, 2016, it has added more than 2,000 stores through new openings and acquisitions, including CST and Cracker Barrel.
Following the acquisition of CST, Couche-Tard also became the general partner of CrossAmerica, owns 100% of its incentive distribution rights (IDR) and holds a 20.5% equity investment. It supplies motor fuel under various brands to more than 1,100 U.S. locations. The combination of CrossAmerica, with its existing wholesale network of more than 700 stores, will make Couche-Tard a leading wholesaler of motor fuel in the United States.
At the acquisition date, Couche-Tard repaid all of CST’s outstanding revolving credit loans and term loans and also launched the process to allow Couche-Tard to repay all of CST’s outstanding senior notes, which it expects to complete by the end of July 2017.
To finance this acquisition, as well as the payments of CST’s outstanding debt, Couche-Tard on June 27 entered into a new credit agreement consisting of an unsecured nonrevolving acquisition credit facility of an aggregate maximum amount of $4.3 billion. It is available exclusively to finance the acquisition of CST and the repayment of any of CST’s and its subsidiaries’ outstanding debt.
Laval, Quebec-based Couche-Tard's network includes 9,424 c-stores in North America, including 8,077 stores selling motor fuel. Its North American network consists of 18 business units, including 14 in the United States covering 42 states and four in Canada covering all 10 provinces. Brands include Circle K, Couche-Tard, Corner Store, The Pantry, Nice N Easy, Flash Foods and Holiday.
In Europe, Couche-Tard operates a retail network across Scandinavia, Ireland, Poland, the Baltics and Russia that includes 2,754 stores. And it licenses more than 1,700 Circle K stores in China, Costa Rica, Egypt, Guam, Honduras, Hong Kong, Indonesia, Macau, Malaysia, Mexico, the Philippines, the United Arab Emirates and Vietnam, which brings the worldwide total network to more than 15,000 stores.