Circle K owner Alimentation Couche-Tard has agreed to sell 192 of its assets to CrossAmerica for a total of $184.5 million.
The group is selling company-operated convenience and retail fuel stores in the deal which also sees the Circle K owner acquiring 73 CrossAmerica outlets.
The group expects the exchange of assets will occur in a series of transactions over a period of up to 24 months.
Any Circle K stores sold to CrossAmerica will remain at Couche-Tard until dealers are secured to operate the sites.
“We believe this transaction will be beneficial to both parties,” Brian Hannasch, president, and CEO of Couche-Tard, said.
“The transfer of Couche-Tard’s retail stores to CrossAmerica will help optimise the long-term value of these assets, further strengthens Couche-Tard’s core retail business and is a win-win for both sets of stakeholders.”
“This transaction provides further diversity to our wholesale network, an important step in our goal of simplifying the business and cash flow streams.” Gerardo Valencia, CEO and president of CrossAmerica, added.
“As partners, we took the necessary time to secure a plan that will allow for an easy transition of these sites from Couche-Tard to CrossAmerica and add value for all stakeholders.”
© 2018 Checkout – your source for the latest Irish retail news. Article by Aidan O’Sullivan. Click subscribe to sign up for the Checkout print edition.