Couche-Tard has agreed to sell to CrossAmerica 192 (162 fee-based and 30 leased) U.S. company-operated convenience and fuel retail stores with an aggregate value of approximately $184.5 million. In return, CrossAmerica has agreed to sell to Couche-Tard assets of an equal value, including 56 stores currently leased and operated by Couche-Tard, and 17 company-operated stores currently owned and operated by CrossAmerica located in the Upper Midwest.
The existing fuel supply arrangements for the 56 master lease properties will remain unchanged.
The companies expect the exchange of assets to finalize in a series of transactions over a period of up to 24 months. The Circle K retail stores to be sold to CrossAmerica will remain at Couche-Tard until dealers are secured to operate the sites. The first transaction is anticipated to occur in the first half of calendar year 2019.
The closing of each asset exchange transaction is subject to customary closing conditions.
“We are very excited about this first asset exchange with Couche-Tard and the substantial benefits it provides to the partnership,” said Gerardo Valencia, president and CEO of CrossAmerica. “This transaction provides further diversity to our wholesale network, an important step in our goal of simplifying the business and cash flow streams.”
Brian Hannasch, president and CEO of Couche-Tard, added, “We believe this transaction will be beneficial to both parties. The transfer of Couche-Tard’s retail stores to CrossAmerica will help optimize the long-term value of these assets, further strengthens Couche-Tard’s core retail business and is a win-win for both sets of stakeholders.”