Canadian retailer Alimentation Couche-Tard Inc. said May 22 that it completed the first tranche of its asset exchanges with motor fuel distributor CrossAmerica Partners LP.

Couche-Tard agreed in December 2018 to sell 192 of its Circle K convenience and fuel retail stores in the U.S., valued at roughly US$184.5 million, to CrossAmerica in exchange for assets of the Pennsylvania-based company worth the same amount.

According to the latest release, Couche-Tard transferred 60 convenience and fuel retail stores worth about US$58.1 million to CrossAmerica, while CrossAmerica transferred assets amounting to US$58.3 million to the convenience store operator. The CrossAmerica assets include all its 17 properties in the U.S. upper midwest area and the real property for eight master lease properties.

Couche-Tard completed dealer agreements for the transferred Circle K stores before the exchange. The agreements include leases and fuel supply agreements with independent dealers, who will lease and operate the stores following the exchange. The agreements were assigned to CrossAmerica in the transaction.

In addition, Couche-Tard agreed to supply fuel to CrossAmerica for resale to the dealers at the 60 stores after the exchange. The existing fuel supply arrangements for the eight master lease properties will not be changed.

The companies expect to complete the remaining exchange of assets before the end of the 2020 first quarter.