Spirit of St. Louis
Details on Couche-Tard's acquisition of83 c-stores in Missouri, Illinois
LAVAL, Quebec -- Alimentation Couche-Tard Inc. said late yesterday—as reported in a CSP Daily News Flash—that it has signed, through its subsidiary Mac's Convenience Stores LLC, an agreement to acquire 83 stores in the St. Louis, Mo., area and nearby central Illinois area from Spirit Energy LLC, which does business as Convenient Food Mart.
Of the 83 convenience stores, 69 operate under the Convenient Food Mart banner and are all company operated. The stores would be operated by the Circle K Midwest Division under the Circle K banner. The remaining 14 locations currently operate [image-nocss] as dealers. Pursuant to this transaction, the company would buy the land and buildings for 15 locations and would assume or enter into leases for the remaining locations.
The company said that it plans to keep the stations Shell branded.
"Subsequent to this transaction, our network in the Circle K Midwest Division would include a total of 424 company operated stores. These stores are located on highly visible and well-traveled roads and occupy strategic locations within their respective trade areas," said Darrell Davis, vice president of operations for Circle K Midwest Division. "These sites are well operated and have a strong management team in place. Strategically, this acquisition is a complement to our expansion and growth plans for the Midwest Division. In addition to being an excellent fit within our current network, it is also an entry into a new market area and would allow us to more easily target growth in the St. Louis market."
Should the transaction close as anticipated, the company estimated that these assets would add revenues of approximately $430 million (U.S.) to Couche-Tard's revenues on an annualized basis. The transaction is anticipated to close in July 2008 and is subject to standard regulatory approvals and closing conditions. 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 Alimentation Couche-Tard currently operates a network of 5,690 c-stores, 3,440 of which include motor fuel dispensing, located in 11 large geographic markets, including eight in the United States covering 29 States and three in Canada covering six provinces.