Couche-Tard, ExxonMobil Strike Another Deal; 33 Sites in Play
LAVAL, QUEBEC -- ExxonMobil is having a busy day, entering into separate acquisition deals with Alimentation Couche-Tard and 7-Eleven Inc.
In the first deal, 33 more convenience stores in southern Louisiana will be carrying the Circle K flag come December when a deal between parent company Alimentation Couche-Tard and ExxonMobil closes.
The stores currently operate under the On the Run banner. No dollar-figure was placed on the deal and internal available cash dollars will fund transaction, according to a release issued today.
The c-stores will continue to carry the Exxon gasoline brand, which allows customers to use their ExxonMobil credit cards and Speedpass devices, once the move to the Circle K portfolio is completed. All told, Couche-Tard expects the deal to bring a total additional volume of 85 million gallons in motor fuel.
The company is slated to buy the land and buildings of 27 of the sites, and either assume or enter into leases for the remaining six. The 33 sites will fall under the operations of the company's Gulf Division.
"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 our respective trade areas. Strategically, this acquisition would be a complement to our expansion and growth plans for the Gulf Division," Jason Broussard, vice president of operations, Gulf Division, said in the release.
The latest deal between Couche-Tard and ExxonMobil comes two months after Couche-Tard entered into an agreement to buy 322 locations plus 65 reseller contracts in Southern California from ExxonMobil, as CSNews Online previously reported.
But ExxonMobil is not stopping with the Louisiana deal. The company has also entered into an agreement with 7-Eleven Inc. that would move the retail interests in 51 sites in the greater Dallas/Fort Worth area to the Dallas-based chain's portfolio. This deal, which was also announced without a price tag, is expected to close later this year.
Included in the 51 sites are two unused parcels of land. The majority of locations will be rebranded as 7-Eleven stores; as with the Couche-Tard deal, the gas stations will retain the Exxon gasoline brand. Once the deal is done, 7-Eleven will start remodeling and rebranding the locations, with the bulk of the work anticipated to be completed by the end of 2012.
"This acquisition fits well with our aggressive growth strategy," said Sean Duffy, 7-Eleven vice president of mergers and acquisitions. "In terms of store growth, 2011 promises to be 7-Eleven's biggest year since 1986."
ExxonMobil and 7-Eleven also have a history of inking deals together. The two sides agreed to an acquisitions pact in late 2010 that brought the retail interests of 183 ExxonMobil locations in Florida into the 7-Eleven fold, as CSNews Online previously reported.