Couche Tard signs asset swap deal in U.S. with Cross America Partners LP
Assets will be exchanged in a series of transactions, as dealers are secured to operate the Circle K stores for CrossAmerica
MONTREAL – Alimentation Couche-Tard and CrossAmerica Partners LP have signed a deal to swap convenience and gas station assets in the U.S.
Under the agreement, Couche-Tard has agreed to sell 192 U.S convenience and fuel retail stores to CrossAmerica, with an aggregate value of about US$184.5 million.
Meanwhile, CrossAmerica has agreed to sell Couche-Tard assets valued at US$184.5 million, including the real estate property for 56 U.S. company-operated convenience and fuel retail stores leased and operated by Couche-Tard and 17 stores owned and operated by CrossAmerica in the U.S. Upper Midwest.
Couche-Tard says the deal is expected to take place through a series of transactions over a period of up to 24 months.
The closing of each transaction is subject to customary closing conditions.
Couche-Tard’s wholly owned subsidiary CrossAmerica GP is the general partner for CrossAmerica Partners LP.
“We believe this transaction will be beneficial to both parties,” Couche-Tard chief executive Brian Hannasch said in a statement.
“The transfer of Couche-Tard’s retail stores to CrossAmerica will help optimize 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.”