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LAVAL, Quebec -- Alimentation Couche-Tard Inc. signed agreements through a subsidiary to acquire fuel terminal facilities located in Phoenix, from BP West Coast Products LLC.
The terminal facilities include 16 above-ground storage tanks with a storage capacity of 220, 000 barrels and is permitted for 44,000 barrels per day, the company stated. The facilities have access to petroleum products from West Texas/Gulf Coast region as well as from the West Coast.
"The Phoenix Terminal is an excellent asset with outstanding employees who manage a very high quality operation," Geoffrey Haxel, vice president of operations for its Arizona Division, said in a statement. "Strategically, this acquisition will add efficiencies in our fuel supply chain servicing our retail network in the Greater Maricopa County Area, Arizona."
The transaction is expected to close in the first quarter 2010, and is subject to standard regulatory approvals and closing conditions. Internal available cash dollars will pay for the transaction, Couche-Tard stated.
The announcement of the purchase came one day after Couche-Tard revealed its second quarter 2010 earnings, when net earnings were down $9.4 million, or 9.6 percent, to $88.2 million for the quarter -- mainly a result of a 9.10-cents-per-gallon decrease in motor fuel gross margin in the U.S., an estimated impact of more than $65 million before income taxes.
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