Circle K to gain 21 stores and 151 dealer sites in Texas, Mississippi and Louisiana.
Alimentation Couche-Tard Inc. has signed, through its wholly-owned indirect subsidiary, Circle K Stores Inc., an agreement with Cinco J, Inc. (doing business as Johnson Oil Co.), Tiger Tote Food Stores and their affiliates to acquire 21 stores, 151 dealer fuel supply agreements and five development properties.
The 21 stores and development properties are located in the State of Texas whereas the 151 dealer fuel supply agreements are located in the States of Texas, Mississippi and Louisiana. The transaction is anticipated to close by the end of Couche-Tard’s first fiscal quarter, which ends July 19, 2015, and is subject to standard regulatory approvals and closing conditions. The parties have signed a confidentiality agreement precluding the parties from disclosing the purchase price for this acquisition at this time. Available cash dollars will pay for the transaction.
These convenience stores operate under the store brands “The Tote” and “Tiger Tote” and offer Exxon and Chevron branded motor fuels, whereas the branded dealer business offers Chevron, Shell, Texaco, Valero, Exxon and Citgo fuel brands.
As a result of the transaction, Couche-Tard plans on keeping the existing fuel brands and would buy the land and buildings for 18 locations and would assume or enter into a lease for the three remaining locations. Following the acquisition, all of the stores would be operated under the Circle K brand by Couche-Tard’s Southwest Division.
“Subsequent to this transaction, Couche-Tard’s network in the Circle K Southwest Division would include a total of 335 company operated-stores and 67 locations under wholesale or franchise agreement. These stores occupy strategic locations within their respective trade areas. This acquisition would be a great addition to Couche-Tard’s expansion and growth plans for the Southwest Division,” commented Kelly McGuire, vice-president operations, southwest division.