Bullboard - Stock Discussion Forum Alimentation Couche-Tard Inc T.ATD

Alternate Symbol(s): ANCTF

Alimentation Couche-Tard Inc. is engaged in convenience and mobility, operating in about 29 countries and territories, with more than 16,700 stores, of which almost 13,100 offer road transportation fuel. With its Couche-Tard and Circle K banners, the Company is an independent convenience store operator in the United States, and it is engaged in the convenience store industry and road... see more

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Alimentation Couche-Tard Inc > TD

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Post by retiredcf on Jun 09, 2023 8:34am

TD

Currently have a $74.00 target. GLTA

Alimentation Couche-Tard Inc.

(ATD-T) C$65.18

Irving Retail Sites Potentially for Sale Event

Yesterday, Irving Oil announced a strategic review to consider a new ownership structure, a full or partial sale, or a change in the portfolio of its assets and how it operates them.

Impact: POTENTIALLY POSITIVE

Along with refineries and other assets, Irving's retail network comprises ~960 fuel sites and c-stores, with an estimated 510 locations in Canada (mostly Quebec and the Maritimes) and ~450 in the New England states. The company does not disclose how many are corporate stores vs. franchised.
We believe Couche-Tard would be interested in the Irving retail network, though there is overlap between Couche-Tard and Irving's eastern Canada network, which would likely require some divestitures if Couche-Tard were to acquire these assets. Additionally, Couche-Tard already operates a number of Irving's c-stores under an agreement initially signed in 2001 and expanded in 2008 to cover an estimated 300+ sites under a 20-year contract.
Using some basic assumptions, we estimate that a hypothetical acquisition (net of divestitures) could add as much as C$2 to Couche-Tard's share price on closing and C$4 after synergies.