SAN ANTONIO — CST Brands Inc. entered into an exclusivity agreement to purchase 100 percent of the outstanding shares of Flash Foods Inc. and certain related assets from The Jones Co. This would mark CST’s largest acquisition in its history.
Included in the transaction are 164 Flash Foods convenience stores in Georgia and Florida; 21 branded quick-service restaurants, a land bank of 15 real estate sites to build new-to-industry stores; a merchandise distribution company operating a 90,000-square-foot distribution center in Georgia; and fuel supply operations.
According to CST, the Flash Foods acquisition would allow the San Antonio-based company to extensively grow its network.
“With our largest network purchase to date, we are excited to work with the great people at Flash Foods,” said Kim Lubel, chairman and CEO of CST Brands. “The Jones family, along with its accomplished leadership team, has built a strong company with a customer-focused culture that aligns perfectly with CST’s core values and strategic vision for growth. We are looking forward to entering this new market with such a solid foundation in Flash Foods."
CST Brands sought out Waycross, Ga.-based Flash Foods specifically because its c-stores are mostly 3,000 square feet or more, allowing the parent of Corner Stores to implement its highly successful made-to-order foodservice program, Lubel added during the company’s 2015 fiscal third-quarter earnings call Wednesday morning.
The Jones Co. was happy to select CST from a “formidable group of potential buyers,” said Jimmy Jones, chairman and CEO of Flash Foods. “We believe the service culture at CST Brands, and its attitude toward both customers and team members makes CST a great fit for the Flash Foods team. We are excited to work together on finalizing this transaction."
Both companies intend to finalize a definitive agreement as “soon as practicable.”
Once the deal is completed, Lubel said she is excited to implement several practices CST Brands can learn from Flash Foods. Most notable is its top-notch information technology department.
“There is a lot of innovation [in IT at Flash Foods] that we will look at differently across our network,” Lubel said Wednesday during CST Brands’ earnings call.
The Jones Co. was advised in the transaction by Fifth Third Securities, a subsidiary of Fifth Third Bank.
CST Brands Inc. operates approximately 1,900 c-stores in the United States and Canada.