SAN ANTONIO--(BUSINESS WIRE)--CST Brands, Inc. (NYSE: CST), a San Antonio-based Fortune 500 fuel and convenience retailer, announced today the closing of the previously announced acquisition of the Flash Foods store network from the Jones Company and its affiliates. Based in Waycross, GA, the Jones Company and its affiliates operate 165 stores in the Georgia and Florida markets.
“I want to welcome the dedicated team members of Flash Foods to CST,” said Kim Lubel, Chairman and CEO of CST Brands. “We have great respect for the organization and are excited to work with and share best practices with this experienced group.”
The Company expects the transaction to be accretive.
The closing of the transaction was funded by cash on hand and borrowings under the Company’s revolving credit facility. The Company recently amended its revolving credit facility to increase total commitments from $300 million to $500 million. The Company anticipates recognizing certain tax benefits through a like-kind exchange of real property acquired in this transaction, including the real property that may be sold later this year as a result of the previously announced California network strategic review.
The Jones Company was advised in the transaction by Fifth Third Securities, a subsidiary of Fifth Third Bank. RBC Capital Markets LLC advised CST Brands, Inc. in the transaction.
CST Brands, Inc. (NYSE: CST), a Fortune 500 Company, is one of the largest independent retailers of motor fuels and convenience merchandise in North America. Based in San Antonio, Texas, CST employs over 14,000 Team Members at over 2,000 locations throughout the Southwestern United States, Georgia, Florida, New York and Eastern Canada offering a broad array of convenience merchandise, beverages, snacks and fresh food. In the U.S., CST Corner Stores proudly sell fuel and signature products such as Fresh Choices baked and packaged goods, U Force energy and sport drinks, Cibolo Mountain coffee, FC Soda and Flavors2Go fountain drinks. In Canada, CST is the exclusive provider of Ultramar fuel and its Dépanneur du Coin and Corner Stores sell signature Transit Café coffee and pastries. CST also owns the general partner of CrossAmerica Partners LP, a master limited partnership and wholesale distributor of motor fuels, based in Allentown, Pennsylvania. For more information about CST, please visit www.cstbrands.com.
Statements contained in this release that state the Company’s or management’s expectations or predictions of the future are forward-looking statements. The words “believe,” “expect,” “should,” “intends,” “estimates,” “target” and other similar expressions identify forward-looking statements. It is important to note that actual results could differ materially from those projected in such forward-looking statements. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see CST Brands’ Form 10-Qs and Form 10-K filed with the Securities and Exchange Commission, and available on CST Brands’ website at www.cstbrands.com. The Company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise.