Alimentation Couche-Tard has signed an agreement with Holiday Cos. to acquire all of the issued and outstanding shares of Holiday Stationstores Inc. and certain affiliated companies. Holiday has more than 500 company operated and franchise locations, a food commissary and a fuel terminal. The acquisition would push Couche-Tard into six new states, including Alaska, Idaho, the Dakotas, Montana and Wyoming. The purchase price was not disclosed.
Holiday, based in Minnesota, was founded by the Erickson family in 1928 and is privately owned. It operates 522 stores; 374 units are company owned and 148 are run by franchisees. The company has a strong presence in the greater Twin Cities metropolitan area and, in addition to Minnesota, operates in Wisconsin, Washington, Idaho, Montana, Wyoming, North Dakota, South Dakota, Michigan and Alaska. Holiday employs nearly 6,000 people across its network.
All sites sell fuel under the Holiday brand. The company owns and operates a fuel terminal in Newport, Minnesota, which supplies one-third of the stations. The company’s car wash business has 221 locations.
Additionally, Holiday operates a food commissary that produces and provides fresh and frozen food to all stores and delivers additional fresh products to stores in the Greater Twin Cities area.
“We are pleased to entrust Couche-Tard with carrying forward the Holiday brand and our highly successful programs,” said Ronald Erickson, chairman and CEO of Holiday Stationstores. “Our 90-year history and our promising future are being placed into excellent hands.”
Brian Hannasch, president and CEO of Alimentation Couche-Tard, added, “The acquisition of Holiday is a great fit for Couche-Tard and will allow us to continue to build on our geographical growth strategy. The Erickson family and its management team have created one of the strongest, well-run companies in the northern tier region of the U.S. with a great brand and consumer offer. We are pleased to welcome the Holiday brand and its highly successful programs to the family.
“We believe there are tremendous synergies between the two companies and that it also gives us a great entry point into the Upper Midwest and in particular a strong position in the greater Twin Cities metropolitan area, with a population of 3.5 million.
“This acquisition, and the added value it will bring to our existing network of 14,000 stores, confirms our capacity to continue to grow by acquisition all the while targeting continued organic growth through food sales and other key categories,” Hannasch said.
Couche-Tard intends to continue Holiday’s operational base at the Holiday corporate headquarters in Bloomington, Minnesota.
The transaction is anticipated to close in the fourth quarter of Couche-Tard’s fiscal year 2018 and is subject to customary regulatory approvals and closing conditions. With the purchase, Couche-Tard would operate stores in every U.S. state except Nebraska and Utah, according to a map on the company’s website.