Alimentation Couche-Tard Inc. and CrossAmerica Partners LP reached an asset-exchange agreement that will see 265 sites change hands in a series of transactions.
As part the agreement, Couche-Tard will sell 192 U.S. company-operated Circle K convenience and fuel retail stores having an aggregate value of approximately $184.5 million to CrossAmerica. CrossAmerica has agreed to sell to Couche-Tard assets having an aggregate value of approximately $184.5 million.
The CrossAmerica assets include the real estate property for 56 U.S. company-operated convenience and fuel retail stores that currently leased and operated by Couche-Tard, and 17 company-operated convenience and fuel retail stores currently owned and operated by CrossAmerica located in the U.S. Upper Midwest.
CrossAmerica Partners LP's general partner CrossAmerica GP was, until 2017, a wholly owned subsidiary of CST Brands, a fuel and convenience retailer. Couche-Tard acquired CST Brands for US$4.4 billion last year, making CrossAmerica GP a wholly owned subsidiary of Couche-Tard.
“ We believe this transaction will be beneficial to both parties,” said Brian Hannasch, president and CEO of Couche-Tard. “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."
The deal is expected to take place through a series of transactions over a period of up to 24 months.