Imperial Esso gas stations Canada wide sold for $2.8 billion

[bizaro86]

I read an analyst report today that indicated this was way higher than they were expecting. Apparently Imperial has been hugh grading for years and these are mostly good urban locations with big Cstores and lots of car washes included.

[GullFoss]

Originally Posted by bizaro86

I read an analyst report today that indicated this was way higher than they were expecting. Apparently Imperial has been hugh grading for years and these are mostly good urban locations with big Cstores and lots of car washes included.

This is true. Imperial has been in the retail fuel business for many decades, so you can imagine they have some of the best sites in high traffic locations, including downtown vancouver, montreal and toronto. There are 1,700 esso stations nationwide, and Imperial sold the last 500 that they still owned, so as you can imagine, they kept their best stations for last.

Prime locations get higher margins (higher gasoline prices). Given how low margins are in the business, and extra 1.5 cent per liter from being in a prime location could basicly double profits from retail fuel.

[Thor]

I've always wanted a proper slurpee machine, since there is nothing in Iceland nearly as good as those.

Sadly ebay is still failing me with a quality option.

[polak]

Couchetard and 7-11 overpaid dramatically for the sites. There were 20 something bidders (my company was one of them) I know some rough numbers but I don't know if I should share.

They obviously saw synergies with their convenience store business as branded gas stations are pretty crappy for independent down stream companies (since you need to stock it with IOL product).

[Hack&Lube]

Originally Posted by polak

Couchetard and 7-11 overpaid dramatically for the sites. There were 20 something bidders (my company was one of them) I know some rough numbers but I don't know if I should share.

They obviously saw synergies with their convenience store business as branded gas stations are pretty crappy for independent down stream companies (since you need to stock it with IOL product).

Then it's not really overpaid if there were 20 bidders. They were just the winning bid. Being the two biggest global multinationals in the convenience store game, they have the clout to do this.

I'm not happy about the Mac's name being retired. I miss Max the Cat and I've gotten used to the winking Owl. Circle-K doesn't really do it for me but it makes sense if they want to create a global brand like 7-11. I've seen it everywhere from Hong Kong to Europe. It's a Canadian company at least.

[polak]

I guess overpaid is the wrong word but the the price vs. the estimated revenue of these sites is crazy whack. Obviously they think their is a lot of value in them for their business though.

I'm excited for more 7-11 locations though.