Couche-Tard Unit to Acquire 322 SoCal Sites from ExxonMobil (XOM)
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Alimentation Couche-Tard Inc. reports that it signed, through its wholly-owned indirect subsidiary, Circle K Stores Inc., an agreement to acquire up to 322 sites plus an additional 65 reseller contracts in Southern California from ExxonMobil (NYSE: XOM).
Closing is expected in Q411 or Q212.
Financial terms of the deal were not disclosed.
Of these 322 sites, 72 are company-operated and 250 are dealer-operated.
Circle K would own the real estate for up to 202 of the total number of sites. In compliance with California law, ExxonMobil will be presenting a ''bona fide'' offer to the 165 fee property dealers. Should any of those properties be purchased by the dealer, the branded supply agreement would still be assigned to Circle K. The balance of the sites would be leased. All of the stores are currently selling fuel under the Mobil brand. The transaction includes the assignment of the supply and branding contracts for Mobil branded motor fuel for 65 reseller locations. All of the 387 locations would continue to offer Mobil branded motor fuel allowing customers to continue using the ExxonMobil credit card. The company-operated sites would be operated under the Circle K brand and the entire network would be part of Couche-Tard's West Coast Division network. The dealer-operated locations would continue to be operated by current dealers.
Closing is expected in Q411 or Q212.
Financial terms of the deal were not disclosed.
Of these 322 sites, 72 are company-operated and 250 are dealer-operated.
Circle K would own the real estate for up to 202 of the total number of sites. In compliance with California law, ExxonMobil will be presenting a ''bona fide'' offer to the 165 fee property dealers. Should any of those properties be purchased by the dealer, the branded supply agreement would still be assigned to Circle K. The balance of the sites would be leased. All of the stores are currently selling fuel under the Mobil brand. The transaction includes the assignment of the supply and branding contracts for Mobil branded motor fuel for 65 reseller locations. All of the 387 locations would continue to offer Mobil branded motor fuel allowing customers to continue using the ExxonMobil credit card. The company-operated sites would be operated under the Circle K brand and the entire network would be part of Couche-Tard's West Coast Division network. The dealer-operated locations would continue to be operated by current dealers.
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