Circle K Stores has agreed to purchase 236 sites from Shell subsidiary Shell Oil Products US and its affiliate Motiva Enterprises.
Under the signed agreements, Circle K, a subsidiary of Alimentation Couche-Tard, will purchase Shell-branded supply contracts and Shell and Motiva’s interest in stations in Baton Rouge, Denver, the greater Memphis area, Orlando, Tampa and southwest Florida, subject to regulatory approval and closing. The stations will remain Shell-branded.
The transaction will result in the conversion of approximately 240 stations from direct to wholesale management, which is part of Shell and Motiva’s strategy to grow the Shell brand in the US.
The agreement also includes the conversion of existing Circle K fuel sites to the Shell brand in several areas. Under this arrangement, the convenience stores will remain Circle K branded while the fuels offering will become Shell branded.
This agreement gets Shell one step closer to our vision of becoming the best fuels retailer in the world, said Stu Crum, Shell’s general manager of retail strategy & portfolio US. Bringing together the number one selling brand of gasoline in the US with one of the country’s most popular convenience store chains will strengthen our offer and help attract new customers.
The companies plan to finalize the transaction before the end of 2006.