Alimentation Couche-Tard Proposes $8 Billion Cumberland Farms Acquisition

Alimentation Couche-Tard has proposed an acquisition of convenience store operator Cumberland Farms for between $7.5 billion and $8 billion. The offer falls short of the $9 billion valuation target Cumberland Farms established for a planned initial public offering in the United States.

Cumberland Farms, formerly known as EG Group, has delayed its IPO following takeover interest from the Canadian company and infrastructure investor Stonepeak. The operator manages more than 3,200 convenience stores and fuel stations across the United States and Europe. It is currently owned by TDR Capital, which holds a 50% stake, and the Issa brothers, who each hold 25%.

Despite the acquisition interest, sources close to Cumberland Farms indicate the company remains committed to a public listing. However, a float is unlikely to occur before 2027.