Last updated on August 30th, 2016 at 10:51 am
Just off its announcement that it planned to merge with CST Brands, Alimentation Couche-Tard Inc. has signed, through its wholly-owned indirect subsidiary Circle K Stores Inc., an agreement to purchase 53 sites held by American General Investments and North American Financial Group (together, “Cracker Barrel”). These sites are located primarily in the Baton Rouge market in Louisiana. The transaction is anticipated to close in the third quarter of Couche-Tard’s fiscal year 2017 and is subject to the standard regulatory approvals and closing conditions. The acquisition will be financed from Couche-Tard’s available cash and existing credit facilities. The parties have agreed not to disclose the purchase price for this acquisition.
These convenience stores currently operate under the store brand Cracker Barrel and include 12 quick-service restaurants. All but one of the sites offer branded motor fuels under the Shell, Chevron or Cracker Barrel brand names. Of the 53 sites, Couche-Tard would own the land and building for 47 locations and would assume or enter into leases for the remaining six locations.
Following this acquisition, all of the stores would be rebranded and operated under the Circle K brand by Couche-Tard’s U.S. Division of the Gulf Coast Region.
“Subsequent to this transaction, Couche-Tard’s network in the Circle K Division of the Gulf Coast Region would include a total of 638 company-operated stores, eight company owned and dealer operated and 54 dealer owned and operated. 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 Gulf Division,” said Brian Bednarz, VP of operations, U.S. Division of the Gulf Coast Region.
