Alimentation Couche-Tard Inc (TSX:ATD.A) has announced a deal to expand its chain of Circle K convenience stores with the acquisition of 112 fuel and convenience retail sites that are being carved out of Franklin, Tennessee-based MAPCO Express.
Couche-Tard said the transaction, which includes surplus property and a logistics fleet, is contingent on a separate transaction under which MAPCO and its remaining locations will be sold to a third party.
The deal would extend the company’s reach in Tennessee and Alabama, as well as Kentucky and Georgia, with high-quality, well-located sites in desirable markets, the company said, noting that all sites are company-operated and most of the real estate is owned.
"We are delighted to add MAPCO's high-quality sites to our footprint in the Southeastern US," Couche-Tard chief operating officer Alex Miller said in a statement.
"As we continue to grow our presence in the region, we look forward to bringing the Circle K experience to new customers and making their lives a little easier every day."
Subject to standard regulator approvals and closing conditions, Couche-Tard said it expects the transaction to close in the second half of 2023. It will finance the acquisition with cash and/or existing credit facilities, including its US Commercial Paper Program.
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