Breaking News: Couche-Tard Acquires 33 On the Run Stores in Louisiana

The stations are expected to retain the Exxon gasoline brand, allowing customers to continue to purchase Exxon fuel and use their ExxonMobil credit cards and Speedpass devices.

Alimentation Couche-Tard Inc. has signed, through its wholly-owned indirect subsidiary, Circle K Stores Inc., an agreement to acquire 33 stores in southern Louisiana from ExxonMobil which operates under the “On the Run” banner.

The transaction, announced today, Aug. 16, is anticipated to close in December 2011 and is subject to standard regulatory approvals and closing conditions. According to a confidentiality agreement between the parties the purchase price cannot be disclosed at this time. Internal available cash dollars will fund the transaction.

The stations are expected to retain the Exxon gasoline brand, allowing customers to continue to purchase the same high quality Exxon fuel and use their ExxonMobil credit cards and Speedpass devices. The corporation expects that these sites would bring a total additional volume of 85 million gallons in motor fuel sales. These locations would be operated by the corporation’s Gulf Division under the Circle K brand. Pursuant to this transaction, the corporation would buy the land and buildings for 27 locations and would assume or enter into leases for the remaining locations.

“Subsequent to this transaction, our network in the Circle K Gulf Division would include a total of 318 company operated-stores. These stores are located on highly visible and well-traveled roads and occupy strategic locations within their respective trade areas. Strategically, this acquisition would be a complement to our expansion and growth plans for the Gulf Division,” said Jason Broussard, vice-president operations, Gulf Division.

Alimentation Couche-Tard Incoperates 5,795 convenience stores, 4,128 of which include motor fuel dispensing, operated by 13 business units, including nine in the U.S., covering 43 states and the District of Columbia, and four in Canada covering all 10 provinces.

 

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