Noting that the 448-store franchise deal and the purchase of an additional 43 ExxonMobil company-operated stores in the Phoenix market were the only acquisition highlights of 2009, Bouchard told CSP Daily News, "It's been a quiet year other than [image-nocss] Exxon, but I was very happy to live with a quieter year with the new economic pattern [unfolding]. We have had to face big challenges in many of our divisions, if not all. But... when you focus on things that you're good at, you find yourself becoming fortunate here and there."
Part of the reason behind the cooling period for this industry consolidatorcurrently at about 3,300 stores nationally and second only to Dallas-based 7-Eleven Inc. in the United Stateswas commercial real estate prices for c-store properties.
"It took more time in our world of single-unit [sites] on standalone corners than other channels, like office buildings and other types of commercial real estate," he said in the exclusive interview. "But depending on where the economy will land in 2010, I think today, we've just started to see more realistic numbers in the [valuation of properties]."
The CEO of Couche-Tard, the Laval, Quebec-based parent company of the Circle K convenience store chain, described multiples as "more reasonable" and said the company's yearly acquisition goal has been 200 stores along with an earnings goal of 10%.
"Even though I've mentioned many times that we want to grow and [have a greater] influence on the market, it's not about store count," he said. "We're disciplined with our acquisitions and will not do foolish things."
In addition to the franchise deal and the 43-store purchase from the Fairfax, Va.-based major-oil company, Couche-Tard has been focusing on improving operational efficiency and integrating 252 stores taken over in an expanded-partnership agreement with Portsmouth, N.H.-based Irving Oil, a deal struck in 2008.
Speaking on the franchise deal, Bouchard described it as "a complete fit with our West and now East Coast" franchise operations. Circle K's franchise count prior to the ExxonMobil purchase was 470. "Although we were not looking to buy another brand, it came along and we're happy it did," he said. When asked about the future of the "On The Run" name, he said the issue as "still in discussion."
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