Alimentation Couche-Tard Inc. announces that it has received approval from the Canadian Competition Bureau to proceed with the proposed acquisition of certain retail assets of Imperial Oil (“Imperial”) in the Provinces ofOntarioand Québec, which was previously announced onMarch 8, 2016. Completion of the acquisition is expected to occur inOctober 2016. It will be financed from Couche-Tard’s available cash and existing credit facilities.
Since the proposed transaction announced in March, Couche-Tard has worked closely with the Bureau with the aim of obtaining approval for the deal. Following the Bureau’s review, Couche-Tard has agreed to divest two retail sites, one inOntarioand one in Québec. The resolution will be registered as a consent agreement with the Competition Tribunal. Until completion of the divestitures in accordance with the consent agreement, one of the sites to be divested and one of the other sites that will be acquired by Couche-Tard will be held and operated separately from Couche-Tard.
InMarch 2016, Couche-Tard announced an agreement with Imperial to acquire 279 Esso-branded fuel and convenience sites. Of these sites, 229 are located inOntario– the majority of which are in theGreater Toronto Area– and 50 sites are located in Québec. All of the Québec sites are in the Greater Montréal Area or on the south shore of Montréal. The agreement also includes 13 land banks and 2 dealer sites, as well as a long-term supply agreement for Esso branded fuel. Of the 279 sites, 238 are owned and 41 are leased.
Subsequent to this transaction and the consent agreement reached with the Bureau, Couche-Tard’s network inCanadawill be comprised of 1,719 sites.
“We are very excited to announce this new addition to the Couche-Tard family and to welcome the great people at Imperial to our team”, saysBrian Hannasch, President and CEO of Couche-Tard. “The sites we are acquiring are a great strategic fit for our business and combine some of the strongest brands in the country. We view this transaction as a transformative acquisition inCanada.”
Jean Bernier, Couche-Tard’s Group President Global Fuels & North-East Operations, added “We are pleased to have closed this transaction as it represents an outstanding opportunity for growth. The addition of Imperial’s sites allows us to expand our network and reach more fuel customers than ever before. Together with the team at Imperial we looking forward to creating an even greater offer and experience for our customers.”