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05/25/2022

Couche-Tard Puts More Stores on the Market as Part of Network Optimization Effort

This latest sale of 109 sites includes 78 U.S. c-stores in 19 states.
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Couche-Tard logo

LAVAL, Quebec — More than 100 Circle K stores have been placed for sale as parent company Alimentation Couche-Tard Inc. aims to maximize its portfolio as part of its network optimization effort.

Alimentation Couche-Tard has retained NRC Realty & Capital Advisors LLC to coordinate and manage the sale of 109 Circle K and Couche-Tard sites in the United States and Canada. The sale includes 31 sites across three provinces in Canada and 78 sites across 19 states in the United States, with an average store size of 2,209 square feet and an average lot size of 28,214 square feet. Of the 109 sites, 42 are fee-owned and 65 are leased, and two are fee and leased while 61 properties sell fuel and 48 are convenience only.

The stores are all offered without fuel supply and without convenience store brand. The bid deadline has been set for July 7.

As Convenience Store News reported, NRC offered and sold 260 U.S. sites for Couche-Tard in 2021, with the stores averaging roughly 2,600 square feet and sit on an average lot size of 29,500 square feet.

"We are excited to assist Circle K again," said Evan Gladstone, NRC's executive managing director. "These stores are being sold in NRC's well-known 'buy one, some or all' format, and NRC expects great interest from individual retailers and small companies," Gladstone said. "Many smaller retailers have had challenges competing with the large buyers over the past several years, and this sale is a terrific opportunity for them to grow their businesses."

Majors Management LLC and its affiliates took ownership of 69 of the convenience stores offered from Circle K Stores Inc. last year in a fourth-quarter transaction. Those c-stores are located in Louisiana, Alabama, Florida, South Carolina, North Carolina and Virginia.

The acquisition extended Majors' geography into Virginia and expands the company's footprint in the other southeastern states. Thirty-four of the sites are converting to franchised Kangaroo Express locations.

In addition, Couche-Tard sold 25 Circle K, Kangaroo Express or Flash Food branded sites in Georgia, Tennessee and South Carolina to AS Capital LLC, a new company established by the principals of Gas Express LLC (GX) and Synergy Capital Investments.

Laval-based Alimentation Couche-Tard operates in 26 countries and territories, with more than 14,100 stores, of which approximately 10,800 offer road transportation fuel. With its Couche-Tard and Circle K banners, it is one of the largest independent convenience store operators in the United States, as well as the c-store industry and road transportation fuel retail in Canada, Scandinavia, the Baltics, as well as in Ireland. It also has a presence in Poland and Hong Kong SAR.

Chicago-based NRC Realty & Capital Advisors LLC provides a full array of real estate and financial advisory services to the convenience store and petroleum industries in North America. NRC assists c-store operators with portfolio evaluation and analysis; refinancing, recapitalization and sale-leaseback financing options; portfolio and single site store sales and merger and acquisition advisory services. Since its inception in 1989, NRC has sold more than 15,000 properties for convenience store retailers and closely held businesses.