Alimentation Couche-Tard Inc. is looking to shed nearly four per cent of its North American network starting with a deal to sell 49 stores in Oklahoma to Casey’s General Stores Inc. for $39 million US.
The deal includes 46 leased and three owned properties and is expected to close by July 31.
The Quebec-based convenience store company says it has also hired a real estate advisory firm to help with the sale of 306 other sites across North America following a strategic review.
“The decision to divest select stores fits within the company’s network optimization strategy and follows a comprehensive and uniform network planning process that began in the fall of 2020,” Couche-Tard CEO Brian Hannasch said in a statement.
“Through this process, we have identified sites that no longer fit our strategic objectives, either from a brand perspective or from a regional scale perspective.”
He added that the retailer has identified many opportunities to expand by building new stores, enlarging others, improving store layouts and enhancing sales of fresh food.
The stores up for sale include 269 locations across 25 states in the United States and 37 sites across six provinces in Canada.
Analyst Irene Nattel of RBC Dominion Securities says the 355 stores, which includes the stores to be sold to Casey’s General Stores, represent about 3.8 per cent of Couche-Tard’s network.
“Given the real estate value associated with the sites to be divested, there is a strong possibility that total proceeds will exceed that $285 million, particularly if locations for sale include prime locations in urban areas,” she wrote in a note to clients.
“While this morning’s announcement is not overly material from a financial perspective, we view the news positively. The network optimization operation is consistent with our positive views around management’s focus on optimizing returns and willingness to think outside the box in its pursuit of surfacing value for shareholders.”
The deal with Casey’s comes more than a decade after the Iowa-based chain rebuffed a hostile takeover attempt by Couche-Tard.
Couche-Tard has more than 14,200 stores in 26 countries and territories.
Toronto-Dominion Bank has named new co-heads of its U.S. commercial banking business.
TD says Andy Bregenzer and Jill Gateman will jointly lead the operations.
The bank says the appointments follow the announcement earlier this year of Chris Giamo’s retirement.
Bregenzer will focus on leading all aspects of the regional commercial bank, including small business.
Gateman will lead TD’s national commercial banking effort in the U.S., including middle market, sponsor-backed finance and TD’s other specialty lending lines of business.
TD, which is working to resolve investigations into failures in its anti-money laundering program in the U.S., announced last week that chief executive Bharat Masrani would retire next year and be replaced by Raymond Chun.
This report by The Canadian Press was first published Sept. 26, 2024.
MONTREAL – Lightspeed Commerce Inc. says it is conducting a review of its business and operations including talks relating to a range of potential strategic alternatives.
The Montreal-based payments technology company made the comments after reports concerning a potential transaction involving the company.
Lightspeed says it periodically undertakes a review of its business and operations with a view of realizing its full potential.
A strategic review is often seen by investors as a prelude to a sale by a company.
Lightspeed says its board of directors is committed to acting in the best interests of the company and its stakeholders.
Company founder Dax Dasilva returned to the role of chief executive officer earlier this year and has been working to return the company to profitability.
This report by The Canadian Press was first published Sept. 26, 2024.
MONTREAL – National Bank of Canada says it has cleared a key regulatory hurdle in its proposed acquisition of Canadian Western Bank.
The Montreal-based bank says it has received the Competition Bureau’s clearance for the deal.
The transaction still requires approval by the Office of the Superintendent of Financial Institutions and the minister of finance.
Canadian Western shareholders voted to approve the deal earlier this month.
National Bank announced an all-stock deal to buy Canadian Western earlier this year in a proposal that valued the Edmonton-based bank at about $5 billion.
It has said its acquisition of Canadian Western will significantly expand its western footprint and create a stronger national competitor.
This report by The Canadian Press was first published Sept. 26, 2024.
