Alimentation Couche-Tard has signed, through its wholly-owned indirect subsidiary Circle K Stores, an agreement with Cinco J, (doing business as Johnson Oil Co.), Tiger Tote Food Stores and their affiliates to acquire 21 stores, 151 dealer fuel supply agreements and five development properties. The 21 stores and development properties are located in Texas with 151 dealer fuel supply agreements located in the Texas, Mississippi and Louisiana.
The convenience stores operate under the store brands “The Tote” and “Tiger Tote” and offer Exxon and Chevron branded motor fuels; the branded dealer business offers Chevron, Shell, Texaco, Valero,Exxon and Citgo fuel brands. As a result of the transaction, Couche-Tard plans to keep the existing fuel brands, buy the land and buildings for 18 locations and assume or enter into a lease for the three remaining locations.
Following the acquisition, all of the stores will be operated under the Circle K brand by Couche-Tard’s Southwest Division.
“Subsequent to this transaction, Couche-Tard’s network in the Circle K Southwest Division would include a total of 335 company operated stores and 67 locations under wholesale or franchise agreement. 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 Southwest Division,” said Kelly McGuire, VP of operations, Southwest Division.
The transaction is expected to close by the end of Couche-Tard’s first fiscal quarter, which ends July 19, and is subject to standard regulatory approvals and closing conditions. The parties have signed a confidentiality agreement precluding the parties from disclosing the purchase price for this acquisition at this time. Available cash dollars will pay for the transaction.
Couche-Tard’s network includes more than 6,300 stores throughout North America, including more than 4,800 stores with road transportation fuel dispensing. The Canadian company’s North American network consists of 13 business units, including nine in the U.S. covering 40 states and four in Canada covering all 10 provinces.