“Copec Sells US Gas Stations to Circle K for $725 Million, Focuses on Latin America Operations”

2023-04-28 02:05:00

Copec – a subsidiary of Empresas Copec – ended its presence in the North American market seven years following admission. The company reported Thursday that signed agreements for the sale of Mapco, a subsidiary acquired in 2016, and which operates a network of 304 service stations and convenience stores in the United Stateswith a presence in the states of Alabama, Arkansas, Georgia, Kentucky, Mississippi, and Tennessee.

Through an essential fact sent to the Commission for the Financial Market (CMF), the firm explained that, With an aggregate purchase price of approximately US$ 725 million -value subject to customary adjustments for this type of operation- the acquisition is carried out by the company Circle Ka subsidiary of Alimentation Couche-Tard, and the majority shareholder of Majors Management.

Alimentation Couche-Tard is a leader in the convenience store sector, operates the Couche Tard, Circle K and Ingo brands; It has more than 14,300 stores in 24 countries and employs close to 122,000 people. For its part, Majors Management operates convenience stores under the Hop In brand and distributes fuel to more than 1,400 service stations in the United States.

As Copec said in a statement, with this sale, Copec seeks to concentrate its efforts on its operations in Latin America, strengthening its value proposition in traditional businesses and promoting the company’s new businesses throughout the region.

“This operation is part of our transformation process, focused on the strategy of new energies, convenience and mobility; continuing with our commitment to accelerate the transition to clean energy”, said the general manager, Arturo Natho, in the letter.

Yes indeed, Copec would remain in the United States with its investments in startups via its subsidiary Wind Ventures.

The sale is subject to certain conditions for this type of operation, and includes the authorization of the competent bodies.

In the transaction, Goldman Sachs and Tyndall Group acted as financial advisors to Copec, while Simpson Thacher & Bartlett LLP acted as legal advisor.

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