Thursday, October 15, 2015
Couche-Tard Purchases Texas Star Assets
Source: Convenience Store DecisionsBy CSD Staff
Couche-Tard expands its base of Circle K stores in its Southwest Division.
Alimentation Couche-Tard Inc. has signed an agreement to purchase all the assets operated under the Texas Star brand from Texas Star Investments Inc. and its affiliates. The agreement was signed through Couche-Tard’s wholly-owned indirect subsidiary Circle K Stores Inc.
The assets are comprised of 18 convenience stores, two free-standing Subway stores and a dealer fuel supply network located in the southern part of Texas. The transaction is anticipated to close in the second half of Couche-Tard’s fiscal year 2016 and is subject to the standard regulatory approvals and closing conditions.
The acquisition will be financed from Couche-Tard’s available cash and existing credit facilities. The parties have agreed not to disclose the purchase price for this acquisition.
These convenience stores operate under the store brand Texas Star and offer Shell and CITGO branded motor fuels. As a result of the transaction, Couche-Tard plans on keeping the existing fuel brands and would buy the land and buildings for 17 locations and would assume or enter into a lease for the one remaining location.
Following the acquisition, all of the stores would be operated under the Circle K brand by Couche-Tard's U.S. Southwest Division.
“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.” commented Kelly McGuire, vice president operations, U.S. Southwest Division.
NRC Realty & Capital Advisors LLC served as the exclusive financial advisor to Texas Star Investments and its affiliate in connection with the sale.