Alimentation Couche-Tard’s portfolio south of the border has been reinforced with the acquisition of Holiday Stationstores in a deal that could be worth up to $2bn.
The Laval-based company, which operates 8,000 Circle K outlets in Canada, is set to get its hands on the issued and outstanding shares of the Minnesota-based retailer.
Holiday runs 522 gasoline and convenience stores in ten U.S. states, including six states of new business to Couche-Tard, and employs close to 6,000 workers.
This move is just the latest step in Couche-Tard’s efforts to make a big mark in the United States following its acquisition of gas station chain CST Brands for $4bn two weeks ago.
This week it also announced a strong performance in its fourth fiscal quarter, with gross profit up by 54% in Canada and a sales increase of 81% in 12 months.
“The acquisition of Holiday is a great fit for Couche-Tard and will allow us to continue to build on our geographical growth strategy,” said Couche-Tard President and CEO Brian Hannasch.
“We believe there are tremendous synergies between the two companies and that it also gives us a great entry point into the Upper Midwest and in particular a strong position in the Greater Twin Cities metropolitan area, with a population of 3.5 million.”
“This acquisition, and the added value it will bring to our existing network of 14,000 stores, confirms our capacity to continue to grow.”
Holiday Chairman and CEO Ronald Erickson added: “We are pleased to entrust Couche-Tard with carrying forward the Holiday brand and our highly successful programs.
“Our 90-year history and our promising future are being placed into excellent hands.”