SAN ANTONIO --CST Brands executives may express thanks for finalizing its purchase of the Flash Foods convenience store network this Thanksgiving day.
The company announced Nov. 25 that it had entered into a definitive agreement to acquire the Flash Foods store network of convenience stores in Georgia and Florida from the Jones Co. and its affiliates, as reported in a 21st Century Smoke/CSP Daily News Flash. The deal effectively bridges a geographical gap between CST Brands' mid-Atlantic and southern stores.
Earlier this month, Flash Foods CEO Jimmy Jones confirmed speculation that the c-store chain was up for sale and that CST Brands was the likely buyer. The final deal was still being hammered out, however.
“The anticipated Flash Foods acquisition is a perfect fit for CST’s strategic vision for growth as it allows for growth through acquisitions, organic growth and inside-store growth," Kim Lubel, chairman and CEO of CST Brands, told CSP Daily News in early November. "We will be able to build on the strong, regional brand presence of the 164 Flash Foods stores by building several new-to-industry stores in and around the existing Flash Foods network with the land bank that comes with the transaction."
The purchase price for the transaction is $425 million, and the transaction is expected to close in the first quarter of 2016.
The acquisition includes:
- 164 Flash Foods convenience stores selling Flash Foods-branded fuel located in Georgia and Florida
- The sites distributed over 290 million gallons for the twelve month period ending June 30, 2015
- 21 branded Quick Service Restaurants, including three standalone locations
- A land bank of 13 real estate sites to build new-to-industry stores
- A merchandise distribution company and a 90,000 square foot distribution center that it operates in Georgia
- A fuel supply company with access to the Colonial and Plantation Pipelines, leased storage and company-owned transportation fleet, distributing fuel to the 164 sites in addition to 10 million gallons to wholesale accounts.
"When we add in the fuel supply, distribution center and great people at Flash Foods, we could not be more excited about this anticipated acquisition and how it will allow us to delight more customers every day in the Georgia and Florida markets,"Lubel said.
The Jones Co., Waycross, Ga., was advised in the transaction by Fifth Third Securities, a subsidiary of Fifth Third Bank. RBC Capital Markets LLC advised CST Brands, Inc. in the transaction.
Based in San Antonio, CST Brands employs 13,500 team members at approximately 1,900 locations throughout the United States and Eastern Canada. CST also owns the general partner of CrossAmerica Partners LP, a wholesale distributor of fuels that serves more than 1,100 locations across 23 states.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.