Canada’s Alimentation Couche-Tard has, through an indirect wholly-owned subsidiary, Mac’s Convenience Stores, signed an agreement to purchase 54 stores in Ohio from Holland Oil Company.
Should this transaction close as planned in September 2006, these acquisitions would add sales of approximately US$325m to Couche-Tard’s revenues and contribute to its earnings on an annualised basis.
The transaction is subject to standard regulatory approvals and closing conditions.
According to a confidentiality agreement between the parties, the purchase prices cannot be disclosed at this time. Internal cash flow dollars will pay for the transaction, the company said.
The 54 convenience stores currently operate under the Holland Oil and Close to Home banners.
“Strategically, these acquisitions would be excellent complements to our current network in the Midwest and would efficiently complement the network expansion plans. Consistent with our development strategy, we selected these 54 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 programs, these 54 sites would contribute to improve profitability of the Division. Subsequent to these transactions, our network in the Midwest Division would include a total of 692 stores,” said Darrell Davis, vice-president operations, Midwest Division.