Last updated on August 16th, 2012 at 09:53 am
Alimentation Couche-Tard Inc. has signed, through its indirect wholly-owned subsidiary, Circle K Stores Inc., an agreement to acquire 27 stores in Eastern Washington State primarily in the “Tri-Cities” area of Pasco, Kennewick and Richland from Sun Pacific Energy, which operates under the “Sun Mart” banner. The transaction is anticipated to close in November. The transaction is subject to standard regulatory approvals and closing conditions. According to a confidentiality agreement between the parties, the purchase price cannot be disclosed at this time. Internal available cash dollars and available credit facilities will fund the transaction.
All stores are company-operated and 26 offer motor fuel, of which 19 are Shell branded and the other seven are Exxon branded. The corporation expects these sites would bring a total additional volume of more than 43 million gallons in motor fuel sales annually, and nearly $35 million in merchandise revenue. Three of the sites are equipped with car washes, and five have sandwich offers under the Subway or Blimpie brands. The sites will be operated by Couche-Tard’s West Coast Division under the Circle K brand. Pursuant to this transaction, the corporation would buy the land and buildings for 26 locations and would assume or enter into leases for the remaining location.
“This is a great opportunity for the West Coast Division to make an entry into a new market with very high quality assets from an outstanding and highly respected operator. I am very confident the assets, market and team would make an immediate positive contribution to the corporation. This transaction would bring the company-operated store count for the division to 252,” said Tim Tourek, VP of operations for the U.S. West Coast Division.