CST & Flash Foods Pen $425M Definitive Agreement
SAN ANTONIO — CST Brands Inc. has entered into a definitive agreement to acquire the Flash Foods network of convenience stores in Georgia and Florida.
The San Antonio-based retailer on Wednesday announced the $425-million deal with The Jones Co. and its affiliates. The companies previously signed an exclusivity agreement, as CSNews Online previously reported.
The definitive agreement includes 164 Flash Foods c-stores selling Flash Foods-branded fuel. These sites distributed more than 290 million gallons of fuel for the 12-month period ending June 30.
In addition, the agreement covers 21 branded quick-service restaurants, including three standalone locations; a land bank of 13 real estate sites to build new-to-industry stores; and a merchandise distribution company and 90,000-square-foot distribution center that Flash Foods operates in Georgia.
The transaction also includes a fuel supply company with access to the Colonial and Plantation Pipelines, leased storage, and company-owned transportation fleet distributing fuel to the 164 Flash Foods sites plus 10 million gallons to wholesale accounts.
The transaction is expected to close in the first quarter of 2016.
The companies first announced a pending deal earlier this month. As CSNews Online then reported, 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 Store convenience stores to implement its highly successful made-to-order foodservice program.
The Jones Co. was advised in the transaction by Fifth Third Securities, a subsidiary of Fifth Third Bank. RBC Capital Markets LLC advised CST Brands in the transaction.