CST Brands Completes the Sale of California and Wyoming Stores
July 07 2016 - 4:49PM
Business Wire
CST Brands, Inc. (NYSE: CST), a San Antonio-based Fortune 500
fuel and convenience retailer, announced today the closing of the
previously announced sale of all 79 stores in the California and
Wyoming markets to 7-Eleven, Inc. and its wholly-owned subsidiary,
SEI Fuel Services, Inc.
The closing purchase price for the transaction is $408 million
plus adjustments for inventory and working capital. With the
closing of this transaction, CST expects to realize a tax benefit
from the completion of a like kind exchange strategy with its
acquisition of the Flash Foods properties in Georgia and Florida
that closed earlier this year. The Company anticipates using the
majority of the cash proceeds from the sale to pay down borrowings
under CST’s revolving credit facility.
Raymond James advised CST Brands, Inc. in the transaction.
About CST Brands, Inc.
CST Brands, Inc. (NYSE: CST), a Fortune 500 Company, is one of
the largest independent retailers of motor fuels and convenience
merchandise in North America. Based in San Antonio, Texas, CST
employs over 14,000 Team Members at over 2,000 locations throughout
the Southwestern United States, Georgia, Florida, New York and
Eastern Canada offering a broad array of convenience merchandise,
beverages, snacks and fresh food. In the U.S., CST Corner Stores
proudly sell fuel and signature products such as Fresh Choices
baked and packaged goods, U Force energy and sport drinks, Cibolo
Mountain coffee, FC Soda and Flavors2Go fountain drinks. In Canada,
CST is the exclusive provider of Ultramar fuel and its Dépanneur du
Coin and Corner Stores sell signature Transit Café coffee and
pastries. CST also owns the general partner of CrossAmerica
Partners LP, a master limited partnership and wholesale distributor
of fuels, based in Allentown, Pennsylvania. For more information
about CST, please visit www.cstbrands.com.
Safe Harbor Statement
Statements contained in this release that state the Company’s or
management’s expectations or predictions of the future are
forward-looking statements intended to be covered by the safe
harbor provisions of the Securities Act of 1933 and the Securities
Exchange Act of 1934. The words “believe,” “expect,” “should,”
“intends,” “estimates,” and other similar expressions identify
forward-looking statements. It is important to note that actual
results could differ materially from those projected in such
forward-looking statements. There is no assurance that a
transaction will be completed. For more information concerning
factors that could cause actual results to differ from those
expressed or forecasted, see CST Brand’s Forms 10-Q or Form 10-K
filed with the Securities and Exchange Commission, and available on
the CST Brand’s website at www.cstbrands.com. The Company
undertakes no obligation to publicly update or revise any
statements in this release, whether as a result of new information,
future events or otherwise.
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version on businesswire.com: http://www.businesswire.com/news/home/20160707006448/en/
CST Brands, Inc.Investors:Randy Palmer, 210-692-2160Executive
Director – Investor RelationsorMedia:Lisa Koenig,
210-692-2659Director of CommunicationsorThe DeBerry GroupMelissa
Ludwig or Trish DeBerry, 210-223-2772
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