New Distributing Sells Eight Convenience Stores in Southeast Texas
VICTORIA, Texas — Eight convenience stores operating under the Fastop and Cimarron store brands are under new ownership.
New Distributing Inc. and Jayen Inc. announced the sale of the retail properties and operations to Saad Ali of Houston. As part of the structured sale, New Distributing will retain fuel supply for the locations for up to 15 years. The sites offer Conoco and Shell branded motor fuels.
[Read more: MFA Oil Acquires Self-Service Retail Fuel Company]
Headquartered in Victoria, the leadership of New Distributing spans three generations. It has grown to become a well-known destination in its concentrated, stable demographic with rapid population growth expected to continue throughout the next decade, and its newly constructed, large-format c-stores have a stellar track record of serving customers throughout the market in Southeast Texas, according to the company.
"Today's transaction allows us to re-direct our resources and capital to our long-term emphasis on our dealer wholesale supply, commercial fuels, and lubricants," said Jon New. "Corner Capital and their team were instrumental in getting our buyers to the closing table and were particularly knowledgeable in the framework and structure of the transaction while retaining the branded fuel supply. We were pleased with their entire efforts."
Ali and his operating partners, who are already multi-unit operators in Texas, will continue to operate the acquired retail assets under the Fastop and Cimarron brands and are committed to making additional investments in the locations.
Carl Ray Polk Jr. and the Corner Capital and Corner Realty teams managed the transaction, including real estate, leases and business valuation, and structured transaction services.
"Having known Jon and his son Devin since my days as a retailer and marketer, we were extremely pleased to provide our transaction services as they exited retail operations," Polk said. "With New Distributing Inc. retaining fuel supply at these locations, we were able to assist Jon and Devin's expansion plans for his wholesale distribution segment for the foreseeable future."