Irving, Texas-based 7-Eleven and its wholly-owned subsidiary, SEI Fuel Services Inc., acquired the c-stores in California and Wyoming for $408 million plus adjustments for inventory and working capital.
With the closing of this transaction, CST Brands 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 said. CST Brands anticipates using the majority of the cash proceeds from the sale to pay down debt under CST’s revolving credit facility.
Raymond James advised CST Brands, Inc. in the transaction.
Meanwhile in connection with the transaction, CST Brands 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 CrossAmerica have agreed to a refund of a portion of the 2015 purchase price paid by CrossAmerica 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.
An 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.
CST Brands Inc. is one of the largest independent retailers of motor fuels and convenience merchandise in North America. Based in San Antonio, Texas, CST owns and operates more than 2,000 locations throughout the Southwestern United States, Georgia, Florida, New York and Eastern Canada.
CST also owns the general partner of CrossAmerica Partners LP, a master limited partnership and wholesale distributor of fuels, based in Allentown, Pa.
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.