Alimentation Couche-Tard Inc has signed through its subsidiary, Circle K Stores Inc, an agreement to purchase 24 convenience stores in west central Florida from Sparky's Oil Co. Should the transaction close as expected in October 2006, these assets would add to Canada-based Couche-Tard's revenues and contribute to its annual earnings.
The transaction is subject to standard regulatory approvals and closing conditions. Sparky's total sales for 2005 were about US $83.9 million. According to a confidentiality agreement between the parties, the purchase price cannot be disclosed yet.
The 24 stores operate under the Sparky's banner and are all company-operated. Twenty-three of the stores have Shell-branded gasoline, and one store is unbranded. The stores will be converted to the Circle K banner, and the gas brands will remain intact. In addition, 17 of the stores have quick-service restaurants branded Subway and Hungry Howies Pizza, both of which are operated under franchise agreements. Sparky's also operates one proprietary deli. Pursuant to this transaction, the company would buy the land and buildings for four locations and would lease the other 20.