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MONTREAL -- The Alimentation Couche-Tard convenience store chain has completed the acquisition of the Circle K Corp. at a cost of $803.8 million. The transaction includes taking over Circle K debt of $7.9 million. Couche-Tard said that with this acquisition, it will become the fourth-largest North-American convenience store chain, with 4,672 stores.
According to Presse Canadienne, this is Couche-Tard's largest acquisition, enabling it to double sales, which are expected to reach $6.7 billion.
Circle K, which previously was owned by to the ConocoPhillips Co., operates 1,663 stores located in 16 states, mainly in the southern parts of the United States. In an official statement Wednesday, Couche-Tard said that this area of the United States is developing quickly.
Circle K also has 616 franchise stores. The company sells gas in approximately 86 percent of its stores.
The acquisition price and refinancing costs connected to the transaction, were financed by three Canadian banks and guaranteed by several American and Canadian Couche-Tard subsidiaries, including Couche-Tard itself.
With this latest acquisition, Couche-Tard now employs 34,000 employees across Canada and in 23 American states.