Canada's Alimentation Couche-Tard Inc has announced that it has entered into an agreement to acquire an independent convenience store and fuel network in Atlantic Canada that operates under the Esso, Wilsons Gas Stops and Go! Store brands.
Wilsons network comprises 79 corporate-owned and operated convenience retail and fuel outlets, 147 dealer outlets including two corporate-owned locations, and a marine fuel terminal in Halifax, Nova Scotia.
The Wilsons chain is operated by Cape D'Or Holdings Limited, Barrington Terminals Limited and other holding entities.
'A Great Fit For Couche-Tard'
Brian Hannasch, president and chief executive officer of Alimentation Couche-Tard, said, "The transaction is a great fit for Couche-Tard and will allow us to continue to build on our geographic expansion strategy through the addition of complementary sites while bringing added value to our team members and customers in Atlantic Canada.
"We are committed to purchasing strong sites with capabilities both inside the stores and on the forecourts to further our organic growth platforms and showcase Couche-Tard's industry-leading commitment to innovation and customer service, and we clearly see that potential in the Go! Stores and Wilsons' assets and its dedicated employees."
The Circle K parent made a $20 billion bid to acquire Carrefour, which was rejected by the French government in January of this year on food security concerns.
Third-Party Acquisition Partner
Couche-Tard added that it plans to acquire the Wilsons network with some assets to be purchased by a third-party acquisition partner to be determined following a review of the proposed transaction by the Canadian Competition Bureau.
The transaction, expected to close in the first half of 2022, is subject to customary closing conditions and regulatory approvals.
The company will finance the deal with the corporation's available cash and / or existing credit facilities.
In April of this year, Alimentation Couche-Tard obtained the approval of the Toronto Stock Exchange (TSX) to commence a new share repurchase programme.