Canadian convenience store company Alimentation Couche-Tard has announced that it has, through its subsidiary Circle K Stores, signed an agreement with Conway Oil Company and Conway Real Estate Company to purchase 16 stores located in New Mexico.
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Should this transaction close as planned this December, these acquisitions would add sales of approximately US$66m to Couche-Tard’s revenues and contribute to its earnings on an annualised basis, the company said.
The purchase agreement is for 16 convenience stores currently operated under the Winners banner with either Shell or Chevron fuel, most located in and around Alburquerque, New Mexico.
Pursuant to this transaction, Couche-Tard would buy the land and buildings for ten locations, and would lease the other six. The purchase price was not disclosed.
“We are pleased with this opportunity which allows us to compliment the network expansion plans in the West Coast Division. Consistent with our development strategy, we selected these 16 stores based on the following criteria: prime locations, potential for growth and quality of people. Under our operation model and with the efficiency of our marketing programmes, these sixteen sites would contribute to improve profitability of the division. Subsequent to this transaction, our network in the West Coast Division will include a total of 286 stores,” said Brian Hannasch, senior vice president of the company’s Western North America division.
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