LAVAL, Quebec -- In announcing Alimentation Couche-Tard's purchase of Statoil in Scandinavia and beyond yesterday (see related story), CFO Raymond Pare compared it briefly to the company's 2003 purchase of the Circle K convenience-store chain. "This acquisition [has] almost the same number of stores that we did in 2003, but in this case, the quality of the assets is pretty high."
What he didn't point out was the similarity of the two purchases as opportunity generators for Couche-Tard.
Couche-Tard first entered the United States with the 2001 purchase of the 225-store Bigfoot chain, made a handful of smaller acquisitions, and then purchased the 437-store Dairy Mart chain a year later. But it was the purchase of Circle K's roughly 2,300 stores that gave Couche-Tard the footprint and the infrastructure to truly gain a national presence in the United States.
Similarly, Couche-Tard's quick dive into the European market with the purchase of Statoil's approximately 2,300 stores will give Couche-Tard prime market share in seven countries, including Norway, Sweden, Denmark, Poland, Russia and the Baltics.
"We feel that this acquisition will give us the platform that we're looking for not only in terms of management, but also in terms of operations, such as back office and other services, in order to prepare for the enormous potential for growth in Europe," Pare said. "Many gas companies are looking to divest assets here, and this platform will allow us to have the tools to benefit. That will give us to be aggressive going forward."
Couche-Tard Inc. announced yesterday it has signed a definitive agreement for a voluntary offer to acquire all of the issued and outstanding shares of Statoil Fuel & Retail for cash consideration of 53 Norwegian kroner, or $9.22, per share before reduction for any dividends and other distributions after Dec. 31, 2011, valuing the total share capital of Statoil Fuel & Retail at $2.8 billion (U.S) and transforming Couche-Tard into a global convenience-store operator, as reported in a Morgan Keegan/CSP Daily News Flash.
Statoil Fuel & Retail is the No. 1 Scandinavian convenience and fuel retailer with more than 100 years of operations in the region. It has a broad network and leading market share across Scandinavia and the Baltic States, as well as a growing presence in Poland with approximately 2,300 full-service or automated stations of which approximately 68% are company-operated.
Statoil Fuel & Retail's board of directors has approved the transaction and recommends that shareholders accept the offer. In addition, Couche-Tard has entered into an agreement with Statoil ASA, the principal shareholder of Statoil Fuel & Retail, pursuant to which Statoil ASA has committed to tender its 54% interest in Statoil Fuel & Retail to the offer, subject to certain conditions.
The transaction is expected to close in June, pending Couche-Tard gaining approval from 90% of Statoil shareholders. Statoil became a public company in 2010.
Pare said Couche-Tard intends to maintain the current management structure and allow Statoil to operate as a standalone company.
"That was one of the most important things in our scoping [out Statoil], to find a company with a good and strong management team," Pare said.
Couche-Tard's stock price rose 14% in morning trading yesterday in Toronto, the biggest intraday increase since Oct. 6, 2003, according to Bloomberg.
Statoil Fuel & Retail ASA is a leading Scandinavian road transport fuel retailer with over 100 years of operations in the region. It has a broad retail network across Scandinavia, Poland, the Baltics, and Russia with approximately 2,300 full-service (fuel and convenience) or automated (fuel only) stations.
Alimentation Couche-Tard Inc. is the leader in the Canadian convenience-store industry. In North America, Couche-Tard is the largest independent convenience-store operator (whether integrated with a petroleum corporation or not) in terms of number of company-operated stores. As of Jan. 29, 2012, Couche-Tard had a network of 5,817 convenience stores, 4,225 of which include motor fuel dispensing. At the same date, the corporation had agreements for the supply of motor fuel to 338 sites operated by independent operators. Couche-Tard's network consists of 13 business units, including nine in the United States covering 42 states and the District of Columbia (primarily under the Circle K flag), and four in Canada covering all 10 provinces (primarily under the Mac's and Couche-Tard flags).
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