Alimentation Couche-Tard Wraps Up Convenience Retail Asia Acquisition
LAVAL, Quebec — Alimentation Couche-Tard is heading to 2021 with a new acquisition under its belt.
The Laval-based company closed on its purchase of Convenience Retail Asia Limited (Circle K HK), which marks its entrance into Asia. The two retail companies announced the approximately $360-million deal on Nov. 4, as Convenience Store News previously reported.
"Circle K Hong Kong is one of the best convenience store operators in Asia and will be an excellent fit within our company. We are pleased to have completed this transaction rapidly and are excited to work with our new teams to advance our growth strategy in the region," said President and CEO Brian Hannasch.
Circle K HK operates a network of Circle K-licensed convenience stores, with 340 company-operated sites in Hong Kong and 33 franchised sites in Macau. The transaction gives Couche-Tard a platform in Asia to launch its regional growth ambitions.
During Couche-Tard's earnings calls on Nov. 24, Hannasch explained Circle K Hong Kong's would help the company understand the opportunities and navigate the potential in the region.
"We're also looking forward to sharing best practices as the Circle K Hong Kong team has developed solid expertise in operating small footprints, convenience only stores in dense urban areas, as well as advanced merchandising, loyalty and supply chain capabilities," he added.
As of Oct. 11, Couche-Tard's network comprised 9,261 convenience stores throughout North America. Its North American network consists of 18 business units, including 14 in the United States covering 47 states and four in Canada covering all 10 provinces. Its European network comprised 2,722 stores.
In addition, under licensing agreements, more than 2,220 stores are operated under the Circle K banner in 15 other countries and territories, which brings the worldwide total network to more than 14,200 stores.