National Post - October 7, 2003
Alimentation Couche-Tard Inc. has announced an $830 million deal to buy more than 2,000 Circle K convenience stores in 16 states. The agreement to purchase the retail outlet and gas chain from ConocoPhillips Co. will vault Couche-Tard to the No. 4 spot from No. 7 in North American convenience store rankings. Over 75 percent of the company's sales will be in the United States. Couche-Tard is Canada's largest convenience store operator, with 1,800 locations.
The Circle K outlets acquired include 1,663 corporate and about 350 franchised or licensed stores concentrated in the sun belt states, with 523 stores in Arizona, 360 in Florida, 158 in California and 151 in Louisiana. Couche-Tard's existing U.S. stores, under the Mac's, Handy Andy and Dairy Mart banners, are concentrated in the Midwest. The Circle K deal would boost its total number of stores in North America to 4,630 from 2,575.
Couche-Tard will pay for the deal with a new C$1.2-billion credit facility and a private placement of 13.5-million subordinated voting class B shares for proceeds of C$223-million. The company plans to immediately cut debt by C$300-million by selling 300 of its stores and leasing them back.
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Tuesday, October 07, 2003
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