LAVAL, Quebec -- Complementing the growth of its Circle K Gulf Division, Alimentation Couche-Tard Inc. has acquired, through its wholly owned indirect subsidiary, Circle K Stores Inc., 33 stores in southern Louisiana from Exxon Mobil Corp. that operate under the On the Run banner.(For more on ExxonMobil's selloff, see related story in this issue of CSP Daily News).The 33 sites include all of ExxonMobil's stores in the Louisiana market.
The stations will retain the Exxon gasoline brand, allowing customers to continue to purchase Exxon fuel and use their [image-nocss] ExxonMobil credit cards and Speedpass devices.
Couche-Tard said that it expects that these sites will bring a total additional volume of 85 million gallons in motor fuel sales. These locations would be operated by its Gulf Division under the Circle K brand. Pursuant to this transaction, the corporation will buy the land and buildings for 27 locations and will assume or enter into leases for the remaining locations.
Louisiana is among the last ExxonMobil markets to be sold off as part of the major-oil company's goal of exiting the retail side of the business. Other ExxonMobil markets yet to be sold include Texas, which is expected to be completed by the end of this year, and New Jersey, which will take longer because it is a right-of-first-refusal state for local operators.
"Subsequent to this transaction, our network in the Circle K Gulf Division would include a total of 318 company operated-stores. These stores are located on highly visible and well-traveled roads and occupy strategic locations within their respective trade areas. Strategically, this acquisition would be a complement to our expansion and growth plans for the Gulf Division." said Jason Broussard, vice president of operations for Couche-Tard's Gulf Division.
As reported in a Morgan Keegan/CSP Daily News Flash yesterday, the transaction is anticipated to close in December 2011. The deal is subject to standard regulatory approvals and closing conditions. According to a confidentiality agreement between the parties, they would not disclose the purchase price. Internal available cash dollars will fund the transaction.
Laval, Quebec-basedCouche-Tard's network is comprised of 5,795 convenience stores, 4,128 of which include motor fuel dispensing, operated by 13 business units, including nine in the United States covering 43 states and the District of Columbia, and four in Canada covering all10 provinces. More than 53,000 people are employed throughout Couche-Tard's retail convenience network and service centers.
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