Lehigh Gas Becomes CrossAmerica Partners
SAN ANTONIO and ALLENTOWN, Pa. — CST Brands Inc. on Wednesday completed its acquisition of the membership interests of Lehigh Gas GP LLC, the general partner of Lehigh Gas Partners LP, for approximately $85 million, or $17 million in cash and 2.044 million shares of CST common stock.
Joe Topper, chairman and CEO of Lehigh Gas Partners, will continue as the company's president and CEO. He has also joined CST Brands' board of directors. CST Chairman and CEO Kim Lubel will assume the role of chairman of the general partner.
"This is a very exciting day for all of us, and signals the start of a new chapter of growth for both CST and the partnership," stated Lubel. "I am happy to welcome Joe Topper to our leadership team and, on behalf of the CST board of directors, to the CST board."
Lehigh Gas Partners LP also changed its name to CrossAmerica Partners LP, effective Wednesday, the companies announced. CrossAmerica will trade under the symbol "CAPL" starting Oct. 6, and the partnership's common units will continue to trade on the New York Stock Exchange.
"I believe that the new name, CrossAmerica Partners, truly reflects our combined vision of growth of CST and CrossAmerica across the North American continent," Topper said. "Collectively, CST and CrossAmerica distribute fuel to approximately 3,000 locations in 27 states from California to Virginia, Florida to Maine, and across eastern Canada."
In connection with the closing, CST's credit agreement was amended to, among other things, extend the maturity of the loans under the agreement from May 2018 to September 2019, and to permit the closing of the acquisition and contemplated transactions with CrossAmerica, including potential future drop-down asset sales to CrossAmerica, subject to certain conditions.
Also in connection with the closing, CrossAmerica's credit agreement was amended to permit the closing of the acquisition and to allow for the acquisition of potential drop-downs from CST, along with certain other items. Additionally, its credit facility was increased from $450 million to $550 million.
CST Brands Inc. is the operator of more than 1,000 Corner Store locations in the United States.