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Alimentation Couche-Tard agrees to buy CST Brands for $4.4bn

RBR Staff Writer Published 23 August 2016

Canadian convenience store operator Alimentation Couche-Tard has agreed to acquire US convenience store chain CST Brands in a transaction valued at about $4.4bn.

Under the definitive merger agreement, Couche-Tard will buy 100% stake in CST for $48.53 per share in cash which also includes the assumption of net debt.

Expected to close in early 2017, the merger deal is subject to CST’s stockholders’ approval and regulatory approvals in both Canada and the US.

Based in San Antonio, Texas, CST is an independent retailer of motor fuels and convenience merchandise in North America.

It employs more than 14,000 people at over 2,000 locations across the Southwestern US, Georgia, Florida, New York and Eastern Canada.

CST Brands, chairman, CEO and president Kim Lubel said: “After the Board’s comprehensive review of strategic alternatives to enhance stockholder value, we are pleased to reach this agreement with Couche-Tard, which we expect to provide immediate and compelling value to our stockholders.

“Our Board believes that Couche-Tard is an ideal partner for 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.”

Couche-Tard operates more than 16,000 stores across Canada, the US, Europe, Mexico, Japan, China, and Indonesia.

It operates its corporate stores under mainly Couche-Tard, Mac's, Circle K, On the Run and also under the affiliated brands 7-jours, Dairy Mart, Daisy Mart and Winks.

After  completion of the latest transaction, Circle K will set up a new business unit in San Antonio with attached shared services operations.

Couche-Tard has also entered into an agreement with Parkland Fuel pursuant to which it would divest several Canadian assets of CST after the merger for about $750m.


Image: Alimentation Couche-Tard has agreed to acquire CST Brands. Photo Courtesy of Patrick Le Barbenchon/Wikipedia.