Couche-Tard to Acquire 83 Spirit Energy Stores
April 30, 2008 -- The purchase would bring the company's Midwest Division store count to 424.

LAVAL, Quebec -- Through its Mac's Convenience Stores LLC subsidiary, Alimentation Couche-Tard Inc. signed an agreement to acquire 83 convenience stores in the St. Louis and central Illinois areas from Spirit Energy LLC, the Canadian retailer stated.

All of the stores are company-operated, 69 of which operate under the Convenient Food Mart banner, Couche-Tard stated. The remaining 14 locations currently operate as dealers. As part of the transaction, Couche-Tard would buy the land and buildings for 15 of the locations and would assume or enter into leases for the remainder, according to the company.

The stores would be operated by the Circle K Midwest Division under the Circle K banner, according to the company. Couche-Tard plans to keep the stations Shell branded.

"Subsequent to this transaction, our network in the Circle K Midwest Division would include a total of 424 company operated stores," Darrell Davis, vice president of operations for the Circle K Midwest Division, said in a statement. "These stores are located on highly visible and well-traveled roads and occupy strategic locations within their respective trade areas. These sites are well operated and have a strong management team in place.

He continued: "Strategically, this acquisition is a complement to our expansion and growth plans for the Midwest Division. In addition to being an excellent fit within our current network it is also an entry into a new market area and would allow us to more easily target growth in the St. Louis market."

Should the transaction close as anticipated in July 2008, Couche-Tard estimated the assets from the acquisition would add revenues of approximately $430 million to its revenues on an annualized basis.

The transaction is subject to standard regulatory approvals and closing conditions, and the purchase price could not be disclosed, due to a confidentiality agreement between the companies.

>

Advertisement