Couche-Tard Acquires Midwest Chain Holiday

Judith Bessette
Julho 11, 2017

Founded in 1928, Holiday operates 522 stores across the upper Midwest and employs almost 6,000 people. Scotiabank lowered their price objective on shares of Alimentation Couche Tard from C$80.00 to C$76.00 and set an "outperform" rating for the company in a research report on Wednesday, March 15th.

The acquisition is expected to be completed in the fourth quarter of Couche-Tard's fiscal year 2018 and will depend on the receipt of customary regulatory approvals and meeting of certain closing conditions.

Couche-Tard noted that the acquisition gives it a strong 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. It's assets include over 500 company operated and franchise locations, a food commissary, and a fuel terminal in Newport, Minnesota. The company has a vehicle wash business with 221 stores.

Both companies have agreed not disclose the purchase price at this time.

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Couche-Tard expects to see annual revenues of $180-190m from the acquired Holiday business.

"This acquisition, and the added value it will bring to our existing network of 14,000 stores, confirms our capacity to continue to grow by acquisition all the while targeting continued organic growth through food sales and other key categories".

Holiday Stationstores chairman and CEO Ronald Erickson said: "We are pleased to entrust Couche-Tard with carrying forward the Holiday brand and our highly successful programs".

Couche-Tard plans to keep Holiday's operational headquarters in Bloomington, the company said in the news release. J.P. Morgan Securities LLC acted as exclusive financial advisor to Holiday and Faegre Baker Daniels LLP acted as legal advisor to Holiday.

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