LAVAL, Quebec -- Adding incrementally to its global retail network, Alimentation Couche-Tard Inc., through its wholly owned indirect subsidiary Circle K Eesti AS, has signed an agreement to purchase the majority of the assets operated under the Premium 7 brand from Sevenoil Est OÜ in Estonia.
"This acquisition would be a great addition to Couche-Tard's expansion and growth plans in Europe. Having just added Ireland to our European network and expanded our footprint in Scandinavia with Shell's retail network in Denmark, Couche-Tard's declaration in 2012 is becoming a reality: Circle K Europe (formerly Statoil Fuel & Retail AS) is our platform for growth in Europe," said Jacob Schram, group president for Europe for Laval, Quebec-based Couche-Tard.
Couche-Tard is also seeking growth opportunities in the United States. It is reportedly among several major bidders to acquire U.S. convenience-store retailer CST Brands Inc., which is exploring a sale.
Couche-Tard Inc. is consolidating its retail brands under one refreshed global banner, creating a new, global convenience brand, Circle K, the company announced in late 2015.
The Estonian assets comprise 23 sites, including 11 full-service gas stations with convenience stores and 12 automated fuel stations.
The parties have agreed not to disclose the purchase price for this acquisition.
Couche-Tard will buy the land and buildings for 23 locations. Following the acquisition, all the sites will be operated under the Statoil brand and within a year be rebranded and operated under the Circle K brand by Couche-Tard's Estonian business unit.
"Subsequent to this transaction, Couche-Tard's network in Estonia would grow by 40% and would total 77 company operated-stores and fuel stations. These sites occupy strategic locations within their respective trade areas. This acquisition would be a great complement to our existing network in the Estonian fuel market," said Jørn Madsen, executive vice present for central and eastern Europe and Ireland for Circle K Europe.
The companies expect the transaction to close in the second quarter of Couche-Tard's fiscal year 2017. The deal is subject to standard regulatory approvals and closing conditions. Couche-Tard will finance the acquisition with available cash and existing credit facilities.
Couche-Tard's network comprises nearly 8,000 convenience stores throughout North America, including more than 6,500 stores offering fuel. Its North American network consists of 15 business units, including 11 in the United States (primarily under the Circle K and The Pantry brands) covering 41 states and four in Canada covering all 10 provinces (primarily under the Mac’s and Couche-Tard brands).
In Europe, Couche-Tard operates a broad retail network across Scandinavia (Norway, Sweden and Denmark), Poland, the Baltics (Estonia, Latvia and Lithuania) and Russia. It includes approximately 2,200 stores, most of which offer fuel and convenience-store products, while the others are unmanned automated fuel stations. Couche-Tard operates key fuel terminals and fuel depots in six European countries.
Since its acquisition of Topaz Energy Group Ltd. in February 2016, Couche-Tard also operates a convenience-store and fuel retailing network of nearly 450 gas stations in Ireland as well as a significant commercial fuels operation, with more than 30 depots and two terminals.
Also, about 1,500 stores are operated by independent operators under the Circle K banner in 13 other countries or regions worldwide (China, Costa Rica, Egypt, Guam, Honduras, Hong Kong, Indonesia, Macau, Malaysia, Mexico, the Philippines, the United Arab Emirates and Vietnam).
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