Alimentation Couche-Tard in Laval, Quebec, announced on Aug. 22 a merger agreement with CST Brands, under which Couche-Tard would acquire CST in an all-cash transaction valued at $4.4 billion, including net debt assumed.
CST is based in San Antonio, Texas, and employs more than 14,000 people at 2,000-plus locations throughout the southwestern United States with a strong presence in Texas; in Georgia; in the state of New York (Nice N Easy); and eastern Canada. CST also controls the general partner of CrossAmerica Partners LP (CAPL), owns 100 percent of its Incentive Distribution Rights and holds a significant equity investment in it. CAPL distributes branded and unbranded road transportation fuel to more than 1,100 locations in the U.S.
“We look forward to welcoming CST and CAPL to the Couche-Tard family,” said Brian Hannasch, Couche-Tard president and CEO. “CST is an excellent company and is well positioned…With this transaction we would strategically strengthen our positioning in both the ‘sun belt’ and the east coast of North America. Our teams are looking forward to meeting CST customers and welcoming them into the Couche-Tard family.”
Alain Bouchard, founder and executive chairman of the board of Couche-Tard, said, “I have always thought that in our industry ‘size matters,’ whether that be for purchasing, logistics, best practices or for becoming famous for our product categories. The addition of CST’s exceptional people and its strategic assets takes us one step further towards all these goals. I look forward to welcoming the CST and CAPL teams onboard into our growing company.”
Upon completion of the transaction, Couche-Tard will establish a new business unit in San Antonio with shared services operations.
