Alimentation Couche-Tard, through its wholly‑owned indirect subsidiaries Mac’s Convenience Stores Inc. and Couche-Tard Inc., is set to acquire a number of Canadian convenience retail assets located in the Provinces of Ontario and Québec from Imperial Oil.
The transaction is for 279 Esso-branded fuel and convenience sites. Of these sites, 229 are located in Ontario—the majority of which in the Greater Toronto Area—and 50 sites are located in Québec. All of the Québec sites are in the Greater Montréal Area or on the south shore of Montréal. The agreement also includes 13 land banks and two dealer sites, as well as a long-term supply agreement for Esso branded fuel. Of the 279 sites, 238 are owned by Imperial and 41 are leased. The total transaction is priced at approximately CAD$1,686 million. Pending the customary regulatory approvals and closing conditions, the transaction is expected to close within six months. The acquisition would be financed from Couche-Tard’s available cash and existing credit facilities.
“Since our acquisition of Silcorp in 1999 we have been looking for an opportunity for a further transformative acquisition in Canada. Today we are happy to announce our agreement with Imperial for 279 Esso sites in Ontario and Québec. Esso is a great brand and a strong partner and we look forward to expanding our relationship with them,” said Brian Hannasch, president & CEO of Couche-Tard. “The opportunity to combine some of the strongest brands in Canada to create a great offer and experience for our customers is very exciting. The sites we would acquire represent an excellent strategic fit for our business, allowing us to expand our network and reach more fuel customers than ever before,” concluded Hannasch.
“Imperial operates an attractive convenience and fuel network with excellent locations, well‑upgraded facilities and a professional team that would complement our existing business in both Ontario and Québec,” added Jean Bernier, Couche-Tard’s group president global fuels & north-east operations. “These sites are among the best assets in these provinces. They have significant customer support for their convenience, coffee and car wash businesses as well as impressive fuel throughput. They are in key urban locations and in two solid growth markets. We look forward to welcoming them to the Couche-Tard family.”