Big merger announced in convenience store industry

Alimentation Couche-Tard Inc. is expanding its U.S. portfolio yet again.



In its biggest acquisition to date, the Canadian convenience store retailer has agreed to buy CST Brands Inc. for $48.53 per share in cash, with the total deal valued at $4.4 billion, including debt.



Couche-Tard operates more than 12,000 locations globally under several brands, including Circle K. Last year, Couche-Tard acquired The Pantry for about $1.7 billion, including debt, adding more than 1,500 stores to its U.S. footprint.



The San Antonio, Texas-based CST operates over 2,000 locations under several banners throughout the Southwestern United States, Georgia, Florida, New York and Eastern Canada.



“With this transaction we would strategically strengthen our positioning in both the ‘Sun Belt’ and the East Coast of North America,” stated Brian Hannasch, CEO, Couche-Tard.



Upon completion of the transaction, Circle K will establish a new business unit in San Antonio with attached shared services operations.



“Our board believes that Couche-Tard is an ideal partner for CST,” said Kim Lubel, chairman, CEO and president of CST. “With Couche-Tard, we will build upon an extensive and attractive convenience and fuel network with enhanced scale and global reach to best position the combined company for future growth. Importantly, our employees will benefit from new opportunities for career development as part of a larger, global company.”