Couche-Tard Grows in New Mexico, Florida, Georgia
Acquires 23 stores from Albuquerque Convenience & Retail, 13 from Publix
LAVAL, Quebec -- Fueling the retailer's insatiable U.S. growth plans, Alimentation Couche-Tard Inc. has signed, through its wholly owned indirect subsidiary, Circle K Stores Inc., an agreement with Albuquerque Convenience & Retail LLC, a wholly owned subsidiary of Phillips 66 Co., to acquire 23 convenience stores in the state of New Mexico. The transaction is anticipated to close in Dec. 2013.
Also, as previously reported in CSP Daily News, Couche-Tard has signed an agreement, through Circle K Stores Inc., with Publix Super Markets Inc. to acquire 13 stores, 11 of which are located in the state of Florida and the other two in state of Georgia. This transaction is also anticipated to close in December 2013.
In October, Publix announced its exit from the c-store business, telling CSP Daily News that executives have "decided to focus on growing our retail environment inside the stores in [the supermarket] footprint.”
As reported in a Raymond James/CSP Daily News Flash, the transactions are subject to standard regulatory approvals and closing conditions. According to confidentiality agreements between the parties, the purchase prices cannot be disclosed.
The New Mexico stores are currently operated as Circle K branded franchises. Couche-Tard's Southwest division would operate them under the Circle K brand and continue to offer Phillips 66 branded motor fuel. And 17 of the sites are equipped with car washes.
Pursuant to this transaction, Couche-Tard would buy the land and buildings for 22 locations and would assume or enter into leases for the remaining location.
"Subsequent to this transaction, our network in the Southwest division would include a total of 271 company operated-stores and six locations under wholesale or franchise agreements. These stores occupy strategic locations within their respective trade areas. Strategically, this acquisition would be a great addition to our expansion and growth plans for the Southwest division," said Lou Valdes, vice president of operations of the Southwest Division.
The Florida and Georgia stores are currently operated under the PIX brand and offer fuel. The sites would be converted to the Circle K brand and sell Circle K branded fuel. Couche-Tard's Florida and Southeast divisions would operate these stores. Eight sites are equipped with car washes.
Pursuant to this transaction, Couche-Tard would buy the land and buildings for eight locations and would assume or enter into leases for the other locations.
"Subsequent to this transaction, our networks in the Florida division would include a total of 414 company operated-stores and the Southeast division would include a total of 279 company operated-stores. These stores occupy strategic locations within their respective trade areas. Strategically, these acquisitions would be a great addition to our expansion and growth plans for these divisions," said Butch Seber, vice president of real-estate development.
As of July 21, 2013, Laval, Quebec-based Couche-Tard's network includes 6,198 convenience stores throughout North America, including 4,678 stores with road transportation fuel dispensing. Its North-American network consists of 13 business units, including nine in the United States covering 39 states and the District of Columbia and four in Canada covering all 10 provinces.