Wednesday, October 14, 2015
Circle K Purchasing Texas Star Assets
Couche-Tard division will add 18 c-stores in the Southwest
Source: Convenience Store News
LAVAL, Quebec — Alimentation Couche-Tard Inc.’s Circle K Stores Inc. subsidiary is purchasing 18 convenience stores, two freestanding Subway stores and a dealer fuel supply network in the southern part of Texas from Texas Star Investments Inc.
The stores operate under the Texas Star brand and offer Shell and CITGO-branded fuels. Couche-Tard plans to keep the existing fuel brands, buy the land and buildings for 17 locations, and assume or enter into a lease for the one remaining location.
Once the transaction closes, the stores will be operated under the Circle K brand name by Couche-Tard’s U.S. Southwest division.
The transaction is anticipated to close in the second half of Couche-Tard’s fiscal year 2016 and is subject to standard regulatory approvals and closing conditions. Couche-Tard will pay for the acquisition from available cash and existing credit facilities.
The purchase price for the transaction was not disclosed.
“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, vice president, operations, U.S. Southwest Division.
As of July 19, Laval-based Couche-Tard’s network comprised 7,987 convenience stores throughout North America, including 6,556 stores offering road transportation fuel.
NRC Realty & Capital Advisors LLC served as the exclusive financial advisor to Texas Star Investments and its affiliate in connection with the sale.