Super Pantry Sells All 55 C-Stores to Couche-Tard
Tri Star deal helps U.S. banner Circle K expand Midwest Division
LAVAL, Quebec & CHAMPAIGN, Ill. -- Picking up all 55 Super Pantry convenience stores from Tri Star Marketing Inc., Alimentation Couche-Tard Inc. on Tuesday signed a deal to acquire the 51 locations in Illinois and four in Indiana.
As reported in a 21st Century Smoke/CSP Daily News Flash, the parties have signed a confidentiality agreement precluding them from disclosing the purchase price for this acquisition.
Following the deal, Couche-Tard will operate all of the c-stores will under the Circle K brand through the Canadian retail giant's U.S. Midwest Division.
The stores currently offer Phillips 66 and Mobil branded motor fuels. Couche-Tard plans on keeping the existing fuel brands and will buy the land and buildings for 54 locations and will enter into a lease for the remaining location. It will also acquire three bulk plant facilities.
"I am personally excited about this transaction, the addition of Super Pantry to Couche-Tard's network of convenience stores will complement its leadership position under the Circle K brand. It is a true win for both consumers and shareholders of both organizations," said Jon Stewart, president and CEO of Champaign, Ill.-based Tri Star Marketing Champaign, Ill. His family has led the Super Pantry business for the last 67 years.
"Subsequent to this transaction, Couche-Tard's network in the Circle K Midwest Division would include a total of 600 company operated-stores and 193 locations under wholesale or franchise agreement," said Bruce Landini, vice president of operations for Couche-Tard's Midwest Division.
"These stores occupy strategic locations within their respective trade areas. This acquisition would be a great addition to Couche-Tard's expansion and growth plans for the Midwest Division," he added.
The companies anticipate that the transaction--signed with Couche-Tard's wholly owned indirect subsidiary Mac's Convenience Stores LLC--will close before the end of Couche-Tard's second quarter, Oct. 12, 2014, and is subject to the standard regulatory approvals and closing conditions. It will pay for the transaction with available cash.
As of April 27, 2014, Couche-Tard's network comprised 6,241 convenience stores throughout North America, including 4,756 c-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.