CST Brands and CrossAmerica Announce Agreement Regarding California and Wyoming Fuel Supply
July 07 2016 - 4:51PM
Business Wire
- CrossAmerica and CST agree on $18.2
million refund for California and Wyoming Fuel Supply
CST Brands (NYSE: CST) and CrossAmerica Partners LP (NYSE: CAPL)
(“CrossAmerica” or “the Partnership”) announced today that it has
reached an agreement regarding the refund associated with CST’s
sale of its California and Wyoming stores.
With today’s announced closing of the sale of 79 California and
Wyoming sites by subsidiaries of CST Brands, Inc. to 7-Eleven, CST
has agreed to compensate CrossAmerica for the decrease in revenues
related to its 17.5% interest in CST’s wholesale fuel business, CST
Fuel Supply LP. CST and the Partnership have agreed to a refund of
a portion of the 2015 purchase price paid by the Partnership for
its ownership interest in CST Fuel Supply, as it relates to the
approximately 191 million gallons sold annually to the 79
California and Wyoming sites that were sold to 7-Eleven. The total
refunded consideration is approximately $18.2 million.
The independent executive committee of the board of directors of
CST Brands and the independent conflicts committee of the board of
directors of the general partner of CrossAmerica have reviewed and
approved the terms and amount of the refund.
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.
About CrossAmerica Partners LP
CrossAmerica Partners is a leading wholesale distributor of
motor fuels and owner and lessee of real estate used in the retail
distribution of motor fuels. Its general partner, CrossAmerica
GP LLC, is a wholly owned subsidiary of CST Brands, Inc., one of
the largest independent retailers of motor fuels and convenience
merchandise in North America. Formed in 2012, CrossAmerica Partners
LP is a distributor of branded and unbranded petroleum for motor
vehicles in the United States and distributes fuel to more than
1,250 locations and owns or leases more than 800 sites. With a
geographic footprint covering 29 states, the Partnership has
well-established relationships with several major oil brands,
including ExxonMobil, BP, Shell, Chevron, Sunoco, Valero, Gulf,
Citgo and Marathon. CrossAmerica Partners ranks as one of
ExxonMobil's largest distributors by fuel volume in the United
States and in the top 10 for additional brands. For additional
information, please visit www.crossamericapartners.com.
Forward-Looking Statements
This press release and any oral statements made regarding the
subjects of this release may contain forward-looking statements of
CrossAmerica Partners, which may include, but are not limited to,
statements regarding CrossAmerica Partners’ plans, objectives,
expectations and intentions and other statements that are not
historical facts, including statements identified by words such as
"outlook," "intends," "plans," "estimates," "believes," "expects,"
"potential," "continues," "may," "will," "should," "seeks,"
"approximately," "predicts," "anticipates," "foresees," or the
negative version of these words or other comparable expressions.
All statements addressing operating performance, events, or
developments that CrossAmerica Partners expects or anticipates will
occur in the future, including statements relating to the
acquisitions, consideration that may be subject to adjustment, and
closing conditions, revenue growth and earnings or earnings per
unit growth, as well as statements expressing optimism or pessimism
about future operating results, are forward-looking statements. The
forward-looking statements are based upon CrossAmerica Partners’
current views and assumptions regarding future events and operating
performance and are inherently subject to significant business,
economic and competitive uncertainties and contingencies and
changes in circumstances, many of which are beyond each of the
company’s control. The statements in this press release are made as
of the date of this press release, even if subsequently made
available by CrossAmerica Partners on its website or otherwise.
CrossAmerica Partners does not undertake any obligation to update
or revise these statements to reflect events or circumstances
occurring after the date of this press release.
Although CrossAmerica Partners does not make forward-looking
statements unless it believes it has a reasonable basis for doing
so, the companies cannot guarantee their accuracy. Achieving the
results described in these statements involves a number of risks,
uncertainties and other factors that could cause actual results to
differ materially, including the factors discussed in this report
and those described in the “Risk Factors” section of the
CrossAmerica Partners’ Form 10-K or 10-Qs filed with the Securities
and Exchange Commission as well as in CrossAmerica Partners’ other
filings with the Securities and Exchange Commission. No undue
reliance should be placed on any forward-looking statements.
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version on businesswire.com: http://www.businesswire.com/news/home/20160707006450/en/
CST Brands, Inc. and CrossAmerica Partners LPInvestors:Randy
Palmer, 210-692-2160orKaren Yeakel, 610-625-8005orMedia:Lisa
Koenig, 210-692-2659
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