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Alimentation Couche-Tard, CrossAmerica Agree To Exchange Assets - Quick Facts

Canada-based convenience store operator Alimentation Couche-Tard Inc. (ANCUF.PK,ATD_B.TO,ATD_A.TO), through its wholly-owned subsidiary Circle K Stores Inc., and CrossAmerica Partners LP (CAPL) on Monday announced an agreement to exchange assets in a series of transactions.

CrossAmerica is a wholesale distributor of motor fuels as well as owner and lessor of real estate used in the retail distribution of motor fuels.

Alimentation Couche-Tarde said it has agreed to sell to CrossAmerica 192 U.S. company-operated convenience and fuel retail stores having an aggregate value of about $184.5 million.

CrossAmerica has agreed to sell to Couche-Tard the real estate property for 56 U.S. company-operated convenience and fuel retail stores currently leased and operated by Couche-Tard, and 17 company-operated convenience and fuel retail stores in the U.S. These assets also have an aggregate value of about $184.5 million.

The 56 U.S. company-operated convenience and fuel retail stores are currently leased and operated by Couche-Tard pursuant to a master lease that CrossAmerica previously purchased jointly with or from CST Brands Inc.

The 17 company-operated convenience and fuel retail stores are currently owned and operated by CrossAmerica and are located in the U.S. Upper Midwest. The existing fuel supply arrangements for the 56 master lease properties will remain unchanged.

The assets will be exchanged in a series of transactions over a period of up to 24 months.

The Circle K retail stores to be sold to CrossAmerica will remain at Couche-Tard until dealers are secured to operate the sites. The companies noted that the process is already underway to identify qualified dealers.

The first transaction is expected to occur in the first half of calendar year 2019. It is expected that there will be no additional funding required as part of these transactions.

The transactions are expected to be accretive to CrossAmerica's distributable cash flow to limited partners.

The asset exchange agreement was approved by the CrossAmerica board of directors following the approval of the terms of the transaction by its independent Conflicts Committee.

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