CST Takes Ownership of Flash Foods Chain
SAN ANTONIO — CST Brands Inc. has closed on its acquisition of the Flash Foods store network.
The deal adds 165 convenience stores in Georgia and Florida to the CST Brands portfolio. The retailer announced the $425-million definitive agreement with Flash Foods' parent, Waycross, Ga.-based The Jones Co., and its affiliates in November, as CSNews Online previously reported.
"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 to earnings.
Financially speaking, the closing of the transaction was funded by cash on-hand and borrowings under CST Brands' revolving credit facility. The company recently amended its revolving credit facility to increase total commitments from $300 million to $500 million.
According to CST Brands, the retailer 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 CST California network strategic review.
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.
San Antonio-based CST Brands is one of the largest independent retailers of motor fuels and convenience merchandise in North America with more than 2,000 locations throughout the Southwestern United States, Georgia, Florida, New York and Eastern Canada. CST Brands also owns the general partner of CrossAmerica Partners LP, a master limited partnership and wholesale distributor of motor fuels, based in Allentown, Pa.