Canadian convenience store operator Alimentation Couche-Tard has announced that it has signed an agreement to purchase 22 sites in the Phoenix Metro area from Shell Oil Products US, a subsidiary of oil giant Shell.
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Under the terms of the agreement, Couche-Tard would buy the land and buildings for 20 of these locations, and would lease the other two. The total acquisition cost is estimated at US$33m, excluding inventories, and would be financed by Couche-Tard’s available cash.
Couche-Tard said that if the transaction closes as expected toward the end of November 2004, this acquisition would add sales of approximately US$95m to the company’s revenues and be accretive to its operating income (EBITDA) on an annualised basis.
All 22 sites will be company operated and converted into Circle K stores. Most of the sites are currently branded with Texaco fuel, and will all be converted to the Shell fuel brand. As part of this transaction, Couche-Tard has also agreed to convert some of its own sites to the Shell brand.
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