Couche-Tard Acquires 36 C-stores in Two Deals
LAVAL, Quebec -- Alimentation Couche-Tard Inc. will acquire 23 convenience stores in New Mexico, and 13 in Florida and Georgia in two separate deals. Both transactions are anticipated to close in December.
The Canada-based company signed an agreement through its wholly owned indirect subsidiary, Circle K Stores Inc., with Albuquerque Convenience and Retail LLC, a wholly owned subsidiary of Phillips 66 Co., for the 23 stores.
Couche-Tard also inked an agreement through its Circle K Stores subsidiary with Publix Super Markets Inc. to acquire the 13 stores, 11 of which are located in Florida and the other two in Georgia.
According to Couche-Tard, the New Mexico stores are currently operated as Circle K-branded franchises. Couche-Tard's Southwest division would operate all 23 under the Circle K brand and continue to offer Phillips 66-branded motor fuel. Seventeen of the sites are equipped with car washes.
In addition, the transaction calls for Couche-Tard to buy the land and buildings for 22 locations, and to 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," said Lou Valdes, vice president operations for the Southwest division. "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."
As for the Publix Super Markets deal, all of those sites are currently operated under the PIX banner 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 of the sites are equipped with car washes.
Under the agreement, 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, real estate development.
Alimentation Couche-Tard Inc. is the parent company of Circle K in the United States and Mac's Convenience Stores in Canada.