Canadian convenience store operator Alimentation Couche-Tard has agreed to acquire Convenience Retail Asia’s (CRA) Hong Kong unit for HK$2.79bn ($359.80m).

The deal marks the Canadian group’s entry into the Asian market.

Under this agreement, Couche-Tard will acquire all the issued and outstanding shares of Circle K HK on a cash-free and debt-free basis.

Circle K HK, a subsidiary of CRA, operates a network of Circle K-licensed convenience stores, with 340 company-operated sites in Hong Kong and 33 franchised sites in Macau.

Couche-Tard president and CEO Brian Hannasch said: “Circle K Hong Kong is one of the best convenience store operators in Asia and will be an excellent fit within our company. We are excited to partner further with their highly advanced team in terms of innovation, loyalty, private label, retail execution and ability to grow market share.

“Upon closing of this transaction, Couche-Tard will reach a milestone in its strategic ambition of entering the high growth Asia-Pacific market with a first-rate management and operations team, which has the credibility, experience and capabilities to support future expansion in the region.”

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The final purchase price is subject to working capital and other balance sheet adjustments, expected for completion by the end of this year.

The Candian group said that it will fund the deal through available cash on hand.

CRA chairman Victor Fung added: “The Board fully endorses the sale of Circle K Hong Kong to our long-term partner and franchisor. This is a win-win for both companies. Our investors will gain from a good return on their investment and Couche-Tard will benefit from a first-class organisation of dedicated and loyal team members who have contributed to the success of Circle K in Hong Kong.”