Earlier today, Alimentation Couche-Tard (TSE:ATD), a gas station & convenience store operator, revealed its plans to acquire 112 fuel and convenience retail locations from MAPCO Express Inc. This acquisition is dependent on a separate deal in which MAPCO’s remaining sites will be sold to an undisclosed third party.
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The 112 stores being purchased are mostly located in Tennessee and Alabama, with a few more locations in Kentucky and Georgia. All of these sites are company-operated, with most of the real estate being owned outright. The agreement also encompasses extra property and a logistics fleet, according to the press release. This acquisition is anticipated to be finalized in the latter half of this year, and ATD will use cash and/or credit to fund it.
This acquisition aligns with Couche-Tard’s ongoing expansion strategy, which involves increasing its global footprint through well-thought-out acquisitions and collaborations. By adding MAPCO’s 112 fuel and convenience retail sites, Couche-Tard can further solidify its position in the Southeastern U.S. market.
Is ATD Stock a Buy, According to Analysts?
According to analysts, ATD stock comes in as a Strong Buy based on seven unanimous Buys assigned in the past three months. The average ATD stock price target of C$77.74 implies 15% upside potential.
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