Convenience store operator Alimentation Couche-Tard has signed, through its wholly-owned indirect subsidiary Circle K Stores Inc., an agreement to purchase all the assets operated under the Texas Star brand from Texas Star Investments and its affiliates. The assets are comprised of 18 convenience stores, two free-standing Subway stores and a dealer fuel supply network located in the southern part of Texas. The transaction is anticipated to close in the second half of Couche-Tard’s fiscal year 2016 and is subject to the standard regulatory approvals and closing conditions.
The convenience stores operate under the store brand Texas Star and offer Shell and Citgo branded motor fuels. As a result of the transaction, Couche-Tard plans to keep the existing fuel brands and would buy the land and buildings for 17 locations and would assume or enter into a lease for the one remaining location.
Following the acquisition, all of the stores would be operated under the Circle K brand by Couche-Tard’s U.S. Southwest Division.
“Subsequent to this transaction, Couche-Tard’s network in the Circle K Southwest Division would include a total of 356 company operated-stores and 157 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, U.S. Southwest Division.
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.
Couche-Tard CFO resigns
In other Alimentation Couche-Tard news, the company’s VP and CFO, Raymond Paré, has resigned, effective Oct. 16.
Paré has indicated his intention to pursue other interests and to spend more time with his family. Couche-Tard’s board of directors has accepted his resignation and says it wishes him success in his future endeavors. Couche-Tard has begun the process of identifying a successor, and Paré will remain available to facilitate a smooth transition. In the meantime, financial and investor queries will be handled by Couche-Tard President and CEO Brian Hannasch.
“We thank Raymond for his contributions to the company over the past 13 years,” said Hannasch. “He has been instrumental in the completion of milestone acquisitions, including Statoil Fuel & Retail and The Pantry, reaching thousands more customers in dozens of new markets and multiplying our market value several times over, as well as laying the foundations for further growth with our new, global Circle K retail brand. We wish him well in his pursuit of new ventures.”
Couche-Tard, based in Canada, is the largest independent convenience store operator in terms of number of company-operated stores in the U.S.