Through wholly-owned subsidiary Circle K Stores, Alimentation Couche-Tard has signed an agreement with CrossAmerica Partners to exchange convenience and fuel retail assets.
As part of the agreement, Alimentation Couche-Tard will divest 192 stores to CrossAmerica for approximately $184.5m. In return, CrossAmerica will sell the real estate property for 56 stores in the US to Couche-Tard for the same value. These assets are currently leased and operated by Alimentation Couche-Tard through a master lease purchased from CST Brands.
“This transaction provides further diversity to our wholesale network, an important step in our goal of simplifying the business and cash flow streams.” The deal also covers the sale of 17 stores currently owned and operated by CrossAmerica in the US.
CrossAmerica CEO and president Gerardo Valencia said: “We are very excited about this first asset exchange with Alimentation Couche-Tard and the substantial benefits it provides to the partnership. “This transaction provides further diversity to our wholesale network, an important step in our goal of simplifying the business and cash flow streams.
“As partners, we took the necessary time to secure a plan that will allow for an easy transition of these sites from Alimentation Couche-Tard to CrossAmerica and add value for all stakeholders.”
Both companies expect to complete sale process in a series of transactions over 24 months. The first transaction is expected to close in the first half of next year.
Following the completion of these transactions, Alimentation Couche-Tard will continue to operate the Circle K retail stores until CrossAmerica finds dealers to operate the sites.