CST Brands, Inc., a San Antonio-based convenience retailer, announced that it has entered into a definitive agreement to sell store operations in both the California and Wyoming markets to 7-Eleven, Inc. and its wholly-owned subsidiary, SEI Fuel Services, Inc. The transaction includes 76 stores in California and 3 stores in Wyoming.
The purchase price for the transaction is $408 million. The cash deal is expected to close mid-summer 2016; however, there is no assurance that a transaction will be completed. With the closing of this transaction, CST expects to realize a tax benefit from the completion of a like kind exchange strategy with its purchase of the properties that were acquired in Georgia and Florida as part of the Flash Foods network.
“These have been great performing stores, which is a tribute to our hardworking, dedicated employees,” said Kim Lubel, chairman, president and CEO of CST. “This is a tremendous opportunity for the right buyer and we look forward to working with 7-Eleven to close this transaction.”
As previously announced, CST is in the process of conducting a full exploration of strategic alternatives for CST to further enhance stockholder value. As previously indicated, CST has formed a special committee of independent directors to oversee the process. The Company intends to provide updates if and when it determines that disclosure is appropriate or necessary.
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 sell fuel and signature products such as Fresh Choices baked and packaged goods and Cibolo Mountain coffee. In Canada, CST’s Dépanneur du Coin and Corner Stores sell signature Transit Café coffee and pastries.