cst brands
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parent of circle k agrees to buy cst brands for $ 4. 4 billion
couche - tard acquiring cst brands in $ 4. 4b deal | convenience store news
the process took 3 + months. i interviewed at cst brands in december 2014 .
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the process took 3 + months. i interviewed at cst brands in december - 2014 .
kim lubel has helmed cst brands since it spun off from valero energy corp. in 2013 .
the partnership funded the transaction through funds available under its credit facility and cst brands utilized available cash .
news about cst brands inc. , including commentary and archival articles published in the new york times .
cst brands immediately became a fortune 500 company upon spinning off from valero energy corp. in 2013 .
circle k parent company finalizes $ 4. 4 billion merger with cst brands - san antonio express - news
couche - tard finally closes acquisition of san antonio - based cst brands inc. - san antonio business journal
san antonio — circle k parent alimentation couche - tard appears to be the winner in the cst brands sweepstakes .
parent of circle k agrees to buy cst brands for $ 4. 4 billion - san antonio express - news
alimentation couche - tard inc. and cst brands, inc. ; analysis to aid public comment; proposed consent agreement
valero stockholders on the books in mid april will receive one share of cst brands for every 9 valero shares they hold .
alimentation couche - tard inc. confirms closing of the agreement with cst brands, inc. and its transaction with parkland fuel corporation
, of the acquisition of cst brands, inc. (
cst
) and its transaction with parkland fuel corporation (
parkland
) (tsx: pki) .
cst brands currently operates a network of about 2, 000 convenience stores. how would those sites be handled by a new owner ?
a new energy company is born — refiner valero energy corp. officially spun off its retail unit on wednesday, creating cst brands inc .
cst brands inc. operates approximately 2, 000 locations throughout the southwestern united states, georgia, florida, new york and eastern canada .
lubel steered cst brands through its spinoff from valero energy corp. in 2013 and has since helmed the company. activist investors pushed cst brands to a sale last year after it saddled itself with liabilities tied to its aggressive expansion strategy that depressed its stock value and threatened its credit rating .
cst brands sold for $ 3. 67b as couche - tard bets on u. s. gas stations amid the rise of uber and tesla
), a subsidiary of seven & i holdings co. , ltd. , signed an agreement to acquire stores from cst brands, inc .
juicy crack spreads have kept downstream refining facilities profitable for the past year, but valero (vlo) might be offering investors something even better via its retail operations spinoff cst brands (cst) .
terry monroe, founder and president of american business brokers & advisers, added once cst is acquired, couche - tard will focus on improving in - store operations at cst brands locations. he also expects cost cutting to take place at acquired cst locations .
valero announced the spin - off earlier this month. cst brands had 2012 revenue of about $ 13 billion. stores are concentrated in the central and southwestern u. s. states. it also sells fuel under the valero and diamond shamrock brands .
, adjusted to include the acquisition of cst brands, inc. , couche - tard' s network comprised of close to 9, 500 convenience stores throughout
the $ 4. 4 billion deal that will see canadian firm alimentation couche - tard take over san antonio - based cst brands inc. officially closed wednesday .
ftc approves final order requiring divestitures of retail fuel stations and convenience stores related to alimentation couche - tard inc. ’s merger with competitor cst brands, inc .
the acquisition of cst brands also included a transaction with parkland fuel corporation, who will be purchasing a majority of cst’s canadian assets from couche - tard, which are located in quebec, ontario and the atlantic provinces .
cst brands inc. , the parent company of convenience store operator corner store, has closed on its acquisition of nice n easy grocery shoppes in new york state .
quebec - based alimentation couche - tard, the parent company of circle k, closed its $ 4. 4 billion merger with cst brands inc. on wednesday .
in late march, joe topper, chief executive officer and president of crossamerica partners, announced his plans to retire as ceo effective sept. 30, 2015, and resigned as president effective immediately. the new president, jeremy bergeron, who currently serves as senior vice president of integration and development for cst brands, comes with nearly 20 years of experience with valero and cst brands. topper will continue to serve on the boards of both cst brands and crossamerica after he formally steps down as ceo .
cst brands was valued at $ 3. 4 billion before the report, but rose to $ 3. 55 billion in tuesday morning trade. it’s assumed laval, quebec - based couche - tard would at least pay this $ 3. 55 figure to cst brands, and probably more. experts predicted cst brands could fetch at least $ 50 per share, with herzog predicting a price that could reach up to $ 56 per share. the company traded at approximately $ 47 per share on aug. 16 .
in november 2014, the company closed on the acquisition of nice n easy grocery shoppes. cst will retain the nice n easy brand. cst brands and crossamerica jointly purchased the assets of nice n easy, with crossamerica purchasing 23 fee sites, as well as certain fuel - distribution assets for $ 65 million. cst brands purchased the retail operations at the 32 company - operated sites and certain other assets .
valero energy corp. spun off its retail segment into a new company, cst brands inc. , which debuted on the new york stock exchange on may 1, 2013 .
the jones company 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 .
bonnie herzog, managing director, beverage, tobacco & convenience store research for wells fargo securities llc, has long looked at couche - tard as a likely acquirer for cst brands .
ftc requires retail fuel station and convenience store operator alimentation couche - tard inc. to divest up to 71 fuel stations as a condition of merger with competitor cst brands, inc .
san antonio — alimentation couche - tard inc. is acquiring cst brands inc. in a $ 4. 4 - billion deal. the merger agreement announced monday morning brings an end to months of speculation about the future of locally based cst .
cst brands and crossamerica partners lp (nyse: capl) jointly purchased the assets of nice n easy, with crossamerica purchasing 23 fee sites as well as certain fuel distribution assets for $ 65 million while cst brands purchased the retail operations at the 32 company - operated sites and certain other assets. crossamerica will lease the acquired real estate to cst and will provide wholesale fuel supply to 24 nice n easy sites under long - term agreements .
san antonio - based cst brands (nyse: cst) is the parent company of corner store, the second - largest convenience store operator in north america with 1, 900 locations in the southwest united states and eastern canada and 12, 000 employees .
joe topper, the chairman and ceo of the general partner of lgp prior to cst’s acquisition, will continue to serve as president and ceo of the general partner and has joined the board of directors of cst brands. kim lubel, the chairman and ceo of cst brands, will assume the role of chairman of the general partner. “this is a very exciting day for all of us, and signals the start of a new chapter of growth for both cst and the partnership, ” said lubel. “i am happy to welcome joe topper to our leadership team and, on behalf of the cst board of directors, to the cst board. ”
“i want to welcome the dedicated team members of flash foods to cst, ” said kim lubel, chairman and ceo of cst brands. “we have great respect for the organization and are excited to work with and share best practices with this experienced group. ”
when cst brands announced plans to explore strategic alternatives, its stock was hovering between the low and mid - $ 30s per share. recently, the stock has climbed to $ 41 per share .
ftc requires retail fuel station and convenience store operator alimentation couche - tard inc. to divest up to 71 fuel stations as a condition of merger with competitor cst brands, inc. | federal trade commission
the canadian parent company of circle k convenience stores finalized its $ 4. 4 billion merger with cst brands inc. as ceo kim lubel announced she is leaving the san antonio - based convenience store operator .
san antonio - based cst brands will release its second - quarter results on aug. 5. it comes five months after the retailer formally launched a full exploration of strategic alternatives in response to pressure from activist shareholders who late last year accused cst leadership of failing to deliver shareholder value .
at least two parties interviewed—each with a different perspective of cst—raised the idea of naming former susser holdings / stripes convenience stores head sam susser (pictured above) as ceo of cst brands. one suggested bringing in susser, who sold his company in 2014 to energy transfer partners, even if cst isn’t sold, while the other identified susser as an alluring figure should an investment group acquire cst. the speculation is rooted largely in two key factors :
given its profitability, cst brands looks already like a “buy” — or at least a “hold” if you received shares in the spinoff. the deal looks even better when you compare it to its major publicly traded competitors .
kim lubel, president and ceo of cst brands inc. , will leave the company after it completes its $ 4. 4 billion merger with alimentation couche - tard inc. , the canadian parent company of circle k .
couche - tard inc. agreed to purchase cst brands, which operates the corner store chain of convenience stores, in an all - cash transaction in august. as part of the deal, couche - tard will assume cst’s debt, which stood at $ 2. 5 billion as of march 31 .
today i say goodbye to the great cst team members that make cst strong. how lucky i am to have something that makes saying goodbye so hard! urltoken
a cst spokesperson did not immediately respond to follow - up requests for comment .
) - - cst brands, inc. (nyse: cst) and lehigh gas partners (nyse: lgp) today announced cst’s completion of the purchase of 100% of the membership interests of lehigh gas gp llc, the general partner of lehigh gas partners lp (nyse: lgp) from lehigh gas corporation and all of the outstanding idrs of lgp. the aggregate consideration was $ 17 million in cash and 2. 044 million shares of cst common stock .
san antonio - - as speculation swirls around the likely sale of convenience - store retailer cst brands, analysts, industry insiders and investors of the publicly traded company agree that the company’s upcoming second - quarter earnings call is critical .
a refining behemoth that became a retail giant as well, valero energy corp. spun off its retail segment into cst brands inc. , debuting on the new york stock exchange on may 1, 2013. since then, cst brands has been focused on the corner store brand, building new sites and acquiring convenience stores, growing its footprint in the northeast, texas and arizona. it has added more than 1, 400 employees, totaling about 13, 500 .
a refining behemoth that became a retail giant as well, valero energy corp. spun off its retail segment into a new company, cst brands inc. , which debuted on the new york stock exchange on may 1, 2013 .
circle k and kangaroo express owner alimentation couche - tard inc. is about to buy cst brands inc. according to published reports and that could catapult the canadian - based retailer ahead of irving - based 7 - eleven by store count .
in addition to lubel, cst’s top four executives also will be leaving the company .
for cst brands and ceo kim lubel, the company' s sale completes a three and a half year run on the nyse in which it rose roughly 65% , more than doubling the gains posted by the s & p 500 index. “after the board’s comprehensive review of strategic alternatives to enhance stockholder value, we are pleased to reach this agreement with couche - tard, which we expect to provide immediate and compelling value to our stockholders, ” added kim lubel, ceo of cst brands .
cst brands ceo and president kim lubel echoed hannasch, “this really gives us a nice scale for circle k in texas and fits almost like a jigsaw puzzle when you layer the two together, on the u. s. footprint in particular. ”
cst brands, inc. investors: randy palmer, 210 - 692 - 2160 executive director – investor relations or media: lisa koenig, 210 - 692 - 2659 director of communications or the deberry group melissa ludwig or trish deberry, 210 - 223 - 2772
quebec - based alimentation couche - tard inc. , the parent company of the circle k chain of gas stations, has agreed to buy san antonio - based convenience store operator cst brands for about $ 4. 4 billion in an all - cash transaction .
the san antonio - based corner store chain of convenience stores will be rebranded circle k after the two brands’ parent companies finalized a $ 4. 4 billion merger wednesday .
alimentation couche - tard inc. announced it has obtained clearance from the ftc for the acquisition of cst brands inc (nyse: cst). couche - tard has agreed to sell 70 sites to empire petroleum partners, llc in the u. s. and expects the divestiture transaction to close at the end of august or in early september, 2017 .
couche - tard has also entered into an agreement with parkland fuel corp. to sell certain canadian assets of cst after the merger for approximately $ 750 million. the assets include cst' s cardlock business, cst' s dealer and commission agents business, cst' s commercial and home energy business, a number of company - operated stores to be determined following the competition bureau of canada' s review of the transaction and cst' s montréal corporate head office .
two venture capital firms that own shares in cst brands, jcp investment management llc and engine capital lp, have criticized the retailer in the past for poor merchandise sales. these activists' efforts led cst to appoint convenience store industry veterans tad dickson and rocky dewbre to its board of directors and undertake an “exploration of strategic alternatives to further enhance shareholder value. ”
and then in june, 7 - eleven bought 79 stores from cst in california and wyoming .
) - - cst brands, inc. (nyse: cst), a san antonio - based fortune 500 fuel and convenience retailer, announced today the closing of the previously announced acquisition of the flash foods store network from the jones company and its affiliates. based in waycross, ga, the jones company and its affiliates operate 165 stores in the georgia and florida markets .
investors will receive $ 48. 53 a share for cst — a price that is 42 percent higher than cst’s closing price on march 3, shortly before the company announced it was considering a sale, couche - tard said monday. couche - tard also agreed to assume all of cst’s debt .
based on several metrics, cst is the cheapest of its peer group. based on projected earnings, cst can be had for a forward p / e of just 14, compared to 17. 6 for susser holdings (suss) and 18. 33 for casey’s general stores (casy). on the enterprise value / ebitda, cst brands is still better than its two peers, clocking in at just 8. 2. that compares 8. 4 and 9. 3 for its respective rivals .
cst unveiled the corner store market brand, which focused on fresh food and groceries, in november 2015 .
cst brands, inc. investors: randy palmer, 210 - 692 - 2160 director – investor relations or media: the deberry group melissa ludwig or trish deberry, 210 - 223 - 2772 or crossamerica partners lp investors: karen yeakel, 610 - 625 - 8126 vice president, investor relations kyeakel @ urltoken
on monday, quebec - based convenience store operator alimentation couche - tard unveiled a $ 3. 67 billion takeover of cst brands, a conglomerate that supplies exxonmobil, valero, bp, shell and phillips66 fuel to some 3, 000 gas stations around the country and operates hundreds of gas station convenience stores .
regarding why the deal makes sense for couche - tard, monroe responded the parent of circle k
can add to its geographic footrptint in the southern portion of the united states. texas is one region that is desirable, as is georgia [ where cst brands acquired flash foods inc. sites ] .
additionally, one of the new directors added to the cst board in march was former susser executive rocky dewbre .
retail fuel station and convenience store operator alimentation couche - tard inc. has agreed to divest up to 71 retail fuel stations with convenience stores to empire petroleum partners in order to settle federal trade commission charges that act’s proposed $ 4. 4 billion acquisition of competitor cst brands, inc. would violate federal antitrust law .
couche - tard inc. agreed to purchase cst brands, which operates the corner store chain of convenience stores, in an all - cash transaction in august. couche - tard won merger approvals from regulators in the u. s. and canada earlier this week and completed the merger wednesday. as part of the deal, couche - tard will assume cst’s debt, which stood at $ 2. 5 billion as of march 31 .
bofa merrill lynch is serving as lead financial advisor and j. p. morgan chase is also serving as financial advisor to cst. wachtell, lipton, rosen & katz and stikeman elliott are acting as legal advisors to cst .
in speaking with an industry analyst recently, senior management of cst brands and crossamerica stated that they are currently looking at 20 deals in their acquisition pipeline and are targeting $ 150 million to $ 200 million in acquisitions a year, subject to market conditions. cst is also focused on organic growth, and plans to build 35 to 40 new locations in the united states this year, as well as 10 to 12 new locations in canada .
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 motor fuels, based in allentown, pennsylvania. for more information about cst, please visit urltoken .
cst brands, inc. , 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 nearly 12, 000 team members at nearly 1, 900 locations throughout the southwestern united states 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. for more information about cst, please visit urltoken .
if you want a real dark horse, some industry observers say keep an eye out for the company that originally divested cst brands—valero energy. “i don’t see it, ” one investor said, “but if they could get it for the right price, it would ensure them a large retail network to carry their [ valero fuel ] brand. ”
the cst acquisition, valued at $ 48. 53 a share, is a big get for couche - tard’s fleet .
valero on tuesday reported first - quarter earnings of $ 1. 18 a share, compared to estimates around $ 1 a share. on a conference call with analysts, the refiner said it is considering spinning off its “midstream” business – logistics, transportation and storage — into a master limited partnership after it completes the spin - off of cst brands .
at this stage, there is less than a 5% probability that cst brands will remain an independent operator. according to multiple sources, the company will be sold before the end of year. two sources confirmed that if the company is not sold by year’s end, ceo kim lubel (pictured above) could be replaced with an interim leader .
cst brands has about 1, 900 company - operated convenience stores and gas stations in the united states and canada and more than 5, 000 retail and branded wholesale outlets in the united states, canada and the caribbean. most of the u. s. company - operated stores do business under the name corner store and most sell valero fuel .
last year, valero decided to spin off cst brands in a move that will concentrate its operations to strictly refining petroleum. that will make vlo a much leaner refining operation and will remove much of the “uncertainty” of retail from its earnings. valero also is considering spinning off its midstream assets into an mlp to gain the tax advantages of being general partner .
cst brands has about 2, 000 company - operated convenience stores and gas stations in the united states and canada and more than 5, 000 retail and branded - wholesale outlets in the united states, canada and the caribbean. most of the u. s. company - operated stores do business under the name corner store and most sell valero fuel .
this press release and any oral statements made regarding the subjects of this release may contain forward - looking statements of cst brands and crossamerica partners. 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. for more information concerning factors that could cause actual results to differ from those expressed or forecasted, see cst brand’s and crossamerica’s (formerly lehigh gas partners’) form 10 - qs or form 10 - k filed with the securities and exchange commission, available at urltoken. neither cst brands or crossamerica partners undertake any obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise .
he added couche - tard is
excited to share best practices with cst as well as to combine the capabilities of cst' s team with couche - tard' s, to enhance value for our stockholders. we strongly believe that our all - cash offer is a compelling one for cst' s stockholders, giving them the opportunity to realize full and immediate value for their investment .
and couche - tard would be making the leap over 7 - eleven with the purchase of a texas - based company. the wall street journal this morning is quoting sources who said couche - tard is nearing a deal to pay $ 3. 4 billion for san antonio - based cst brands, which was formed in 2013 when valero energy corp. spun off its stores .
acquiring cst also gives couche - tard a leg up in the convenience store industry’s shift toward in - store sales of fresh food .
these assets include 159 cst stores, its montreal corporate office, its commercial cardlock business and its entire commercial and home energy business .
“it’s been more than four months since cst began looking at strategic alternatives. some investors are growing impatient, ” said one institutional investor, who, like others interviewed for this story, spoke on condition of anonymity to comment openly about cst and its future prospects .
couche - tard will, through its acquisition, also acquire cst' s interest in crossamerica partners lp and associated incentive distribution rights .
closing of the acquisition of cst is expected to occur on june 28, 2017. cst stockholders will receive $ 48. 53 in cash per share, for a total enterprise value of approximately us $ 4. 4 billion, including the assumption of net debt .
in 2014, cst acquired the general partner of crossamerica partners lp (formerly lehigh gas partners) and then jointly acquired 32 nice n easy grocery shoppes in new york, and erickson oil of wisconsin and its 64 freedom valu stores. cst brands also picked up 22 timewise stores in texas from landmark industries and 41 company - operated one stop convenience stores based in charleston, w. va. , along with four commission agent sites, nine dealer fuel - supply agreements and one freestanding franchised quick - service restaurant .
cst brands has company - operated convenience stores and gas stations in the united states and canada and more than 5, 000 retail and branded wholesale outlets in the u. s. , canada and the caribbean. more than half of cst' s u. s. corner stores are located in texas. most of the u. s. company - operated stores do business under the name corner store and most sell valero fuel, but the company is emphasizing the corner store brand rather than the fuel brand .
statements contained in this release that state the company’s or management’s expectations or predictions of the future are forward - looking statements. the words “believe, ” “expect, ” “should, ” “intends, ” “estimates, ” “target” 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. for more information concerning factors that could cause actual results to differ from those expressed or forecasted, see cst brands’ form 10 - qs and form 10 - k filed with the securities and exchange commission, and available on cst brands’ website at urltoken. 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 .
monday' s all - cash deal values cst brands at $ 48. 53 a share, a 42% premium to the company' s share price in march when reports of a sale first surfaced. couche - tard is valuing cst at $ 4. 4 billion when including its debt. for couche - tard, the acquisition will expand its footprint in the u. s. and will give it ownership of a company that sold nearly 3 billion gallons of gasoline last year and generated $ 11. 4 billion in sales .
add in the fact that cst management has already stated its intention to pay a dividend, and you have a recipe for long - term success .
cst’s stock - price reaction in light of the news was somewhat unusual. instead of rising toward couche - tard’s offer price as expected, cst dropped slightly monday, closing at $ 47. 45 a share. and in another curiosity, couche - tard’s shares soared by more then 7 percent .
this review led cst to shed some underperforming assets, including 79 convenience stores in california and wyoming, which the company sold to 7 - eleven inc .
the price tag equals $ 48. 53 per share in cash. in all, the transaction value represents a premium of approximately 42 percent to cst' s closing stock price on march 3, the last date prior to cst announcing that its board of directors began exploring strategic alternatives to further enhance stockholder value .
in june, cst brands, with partner crossamerica partners lp, entered into a definitive agreement to acquire the one stop convenience - store chain based in charleston, west virginia. the transaction includes 41 company - operated one stop convenience stores, four commission - agent sites, nine dealer fuel - supply agreements and one freestanding franchised quick - service restaurant. of the 45 company - operated and commission agent sites, 30 are owned in fee. five of the company - operated locations have quick - service restaurants. for the year ended dec. 31, 2014, the aggregate 54 sites sold approximately 36 million gallons of motor fuel primarily under the marathon and exxon fuel brands, and had approximately $ 40. 5 million in inside sales .
laval, quebec - based couche - tard is a global leader in the convenience and fuel retail industry, with a strong circle k brand across the united states. together, couche - tard and cst will join on the journey to become the world' s preferred destination for convenience and fuel, according to cst .
the merger constitutes a significant coup for couche - tard in its bid to become the dominant convenience store operator in north america. cst brands operates 2, 019 stores in the united states and canada, a network attained by the san antonio’s aggressive acquisitions strategy since it spun from valero energy corp. in 2013 — though the approach saddled the company with billions in debt. the acquisition brings couche - tard’s north american convenience store network to 10, 180 stores .
while it currently trades at a discount, cst won’t stay that way for long. with long - term pricing contracts for gasoline still in hand from its former parent, along with its healthy real estate advantage (can you say a reit potential ?), analysts estimate cst should and will eventually trade for a hefty premium in the space. just how hefty? if cst can approach the industry average for ev / margins, shares should trade about 70% higher than current prices .
cst’s network of convenience stores offer a broad array of merchandise, beverages, snacks and fresh food. in the united sates, cst corner stores sell products such as fresh choices baked and packaged goods, u force energy and sport drinks, cibolo mountain coffee, fc soda and flavors2go fountain drinks. u. s. stores are known for kolaches and whoopie pies. in 2012, cst sold more than four million kolaches and 1. 3 million whoopie pies baked fresh in its u. s. stores. in canada, cst is the exclusive provider of ultramar fuels and its depanneur du coin and corner stores sell signature transit cafe coffee and pastries .
cst brands, inc. operates as a holding company, which conducts substantially all of its operations through its subsidiaries. it is an independent retailer of motor fuel and convenience merchandise items in the u. s. and eastern canada. the company' s operations include the sale of motor fuel at convenience stores, filling stations and cardlocks, the sale of convenience merchandise items and services at convenience stores and the sale of heating oil to residential customers and heating oil and
ceo kim lubel, who led cst from its inception through the merger, announced wednesday that the closing of the deal would be her last day with the company .
meanwhile, cst made $ 112 million from fuel sales during the three - month period ended march 31 compared with $ 120 million during the same timeframe last year .
headquartered in quebec, canada, act operates convenience stores and retail fuel stations worldwide, including nearly 4, 700 in united states. almost all the convenience stores, which operate primarily under the circle k and kangaroo express banners, also sell retail fuel under a variety of company and third - party brands .
the sale of more than stores by cst would be one of the biggest recent moves at consolidating the convenience store industry and would give couche - tard new bragging rights .
cst shareholders are still making out pretty well in this deal, considering the run up in shares since cst announced it was exploring a sale. couche - tard is topping the stock’s highest stand - alone price since its 2013 spinoff from valero and paying a 26 percent premium to analysts’ average price target before the sale speculation picked up in the spring .
cst' s network of convenience stores offer a broad array of merchandise, beverages, snacks and fresh food. in the united states, cst corner stores sell private - label products, such as fresh choices baked and packaged goods, u force energy and sport drinks, cibolo mountain coffee, fc soda and flavors2go fountain drinks. u. s. stores are known for kolaches and whoopie pies. in canada, cst is the exclusive provider of ultramar fuels and its depanneur du coin and corner stores sell signature transit cafe coffee and pastries .
while the heart of its portfolio resides in texas, the company’s remaining assets are far - flung through its control of 265 stores in canada, more than 70 from its 2014 acquisition of the nice n easy chain in upstate new york, and operations of crossamerica partners lp, a master limited partnership (mlp) with headquarters in allentown, pa. , that is engaged in wholesale distribution of motor fuels. in addition, cst brands also owns the 170 - store flash foods inc. based in waycross, ga .
cst responded by forming a special committee of independent directors to oversee the process, forging agreements with activist shareholders jcp management and engine capital lp to changes on the company’s board of directors .
the merger is expected to close in early 2017, according to the release. it is subject to the approval of cst’s shareholders and regulators in the u. s. and canada .
it is a great day for our investors, our employees and, above all, for our customers. cst is the fourth - largest network of convenience stores and fuel retailing in
crossamerica partners lp closed on the purchase of all of the outstanding shares of hudson, wis. - based erickson oil products inc. and certain related assets for $ 85 million, subject to certain post - closing adjustments. erickson operates 64 convenience stores in minnesota, michigan, wisconsin and south dakota, with a concentration in the twin cities. crossamerica intends to operate the freedom valu convenience stores, but expects to transfer the operation of certain sites over time to cst brands inc. , the parent company of crossamerica’s general partner .
acquiring cst also gives couche - tard a leg up in the convenience store industry’s shift toward in - store sales of fresh food. under lubel’s leadership, cst sought to insulate itself from volatile gas prices and falling cigarette sales by increasingly offering freshly prepared food items and groceries at its convenience stores and unveiled a separate brand, corner store market, specifically focusing on fresh food .
iridian asset management, vanguard, american century and pennant capital are the top four shareholders of cst, according to filings with the securities and exchange commission. bofa merrill lynch is serving as lead financial advisor and j. p. morgan chase is also serving as financial advisor to cst. wachtell, lipton, rosen & katz and stikeman elliott are the company' s legal advisors .
cst employs more than 14, 000 team members at more than 2, 000 locations throughout the southwestern united states, georgia, florida, new york and eastern canada. its u. s. banners are corner stores, nice n easy grocery shoppes, and flash foods. in canada, cst is the exclusive provider of ultramar fuel and its dépanneur du coin and corner stores .
since then, cst fetched a very lucrative return from 7 - eleven inc. and its subsidiary sei fuel services, selling 79 locations —all but three sites in california—for $ 408 million in may .
we look forward to welcoming cst and crossamerica to the couche - tard family ,
said brian hannasch, couche - tard' s president and ceo .
cst is an excellent company and is well positioned in the southwestern united states with an important presence in texas, georgia, in the u. s. southeast region, new york and eastern canada. with this transaction we would strategically strengthen our positioning in both the' sun belt' and the east coast of north america. our teams are looking forward to meeting cst customers and welcoming them into the couche - tard family .
cst had been on a shopping spree since its spinoff, issuing new debt to finance its ambitious growth plans. the convenience store operator acquired $ 300 million of fresh debt with the february purchase of flash foods, a georgia - based convenience store chain with 165 stores. that month, a cst subsidiary snatched up wisconsin - based erickson oil products and its 64 stores in the upper midwest. last year, cst bought new york - based nice n easy grocery shoppes ’s 77 stores and crossamerica partners bought 22 convenience stores in san antonio and austin from houston - based landmark industries in early 2015 .
the transaction also represents a premium of approximately 61 percent since may 1, 2013, the last date prior to regular way trading of cst following the company' s spin off from valero energy corp .
the efforts by cst seemed to pay off. the convenience store operator made $ 164 million from merchandise and services during the first quarter of this year, a 2. 5 percent boost from $ 160 million earned during the same period in 2016. meanwhile, cst made $ 112 million from fuel sales during the three - month period ended march 31 compared with $ 120 million during the same timeframe last year .
cst’s gross profit from sales of merchandise and services in the u. s. and canada jumped 24 percent to $ 182 million during the second quarter, compared to $ 147 million during the same period in 2015. gross profit for fuel sales, including sales made by cst’s subsidiary crossamerica partners lp, rose to $ 134 million during the second quarter — or 14 percent more than the $ 118 million last year .
executives for both companies view the sale as a major in - road for couche - tard to establish a larger footprint for its circle k chain in the southeast, especially in texas where cst runs 648 stores .
the $ 48. 53 offering price also is 3 percent above cst’s closing price as of last monday, hours before the wall street journal reported that couche - tard was the likely winning bidder for the san antonio company .
the boards of both companies unanimously agreed to the sale. couche - tard plans to rebrand cst’s stores under the circle k logo and to establish a business unit in san antonio with shared service operations after the acquisition closes .
san antonio, texas - based cst operates 1, 146 convenience stores and retail fuel stations in the united states. the convenience stores operate primarily under the corner store banner, while the fuel stations generally use the valero brand .
crossamerica partners lp, headquartered in allentown, pa, is a leading wholesale distributor of motor fuels and owner and lessee of real estate used in the retail distribution of motor fuels. formed in 2012, the company distributes fuel to over 1, 050 locations and owns or leases more than 625 sites in sixteen states: pennsylvania, new jersey, ohio, florida, new york, massachusetts, kentucky, new hampshire, maine, tennessee, maryland, delaware, west virginia, virginia, illinois and indiana. the company is affiliated with several major oil brands, including exxonmobil, bp, shell, chevron, sunoco, valero, gulf and citgo. crossamerica ranks as one of exxonmobil' s largest distributors by fuel volume in the united states and in the top 10 for many additional brands. for additional information, please visit urltoken (formerly urltoken) .
couche - tard plans to run its largest u. s. operation from cst’s former 559, 258 - square - foot headquarters at 19500 bulverde road on the north side, which will manage the texas stores including 170 in san antonio .
cst sought the sale after two activist investors — engine capital lp in new york and houston - based jcp investment management — muscled their way onto the board in march and pushed the company to seek “strategic alternatives” to boost its stockholder value .
under lubel’s leadership, cst sought to insulate itself from volatile gas prices and falling cigarette sales by increasingly offering freshly prepared food items and groceries at its convenience stores and unveiled a separate brand, corner store market, specifically focusing on fresh food .
i have always thought that in our industry' size matters', whether that be for purchasing, logistics, best practices or for becoming famous for our product categories ,
said alain bouchard, founder and executive chairman of the board of directors, couche - tard .
the addition of cst' s exceptional people and its strategic assets takes us one step further towards all these goals. i look forward to welcoming the cst and crossamerica teams onboard into our growing company .
that strategy weighed down cst’s stock and prompted s & p global ratings to warn the company earlier this year of a possible downgrade in its credit rating. s & p revised its creditwatch implications to “positive” from “developing” on news of the sale .
in recent months, cst had been reshaping itself to emphasize sales of groceries and fresh food over fuel through its corner store market concept, a move intended to insulate the company from volatility in the oil and gas industry and declining cigarette sales .
the efforts by cst seemed to pay off. the convenience store operator made $ 164 million from merchandise and services during the first quarter of this year, a 2. 5 percent boost from $ 160 million earned during the same period in 2016 .
two sources told csp daily news that while cst is intent to sell the entire network to a single buyer, if it cannot obtain a satisfactory price, it could divest the canadian and new york assets and the flash foods portfolio in separate transactions .
the newly minted company is the second - largest publicly traded convenience retailer in north america, with 1, 900 outlets in the u. s. and canada. the company will trade on the new york mercantile exchange under the ticker cst starting thursday .
despite selling up to 71 cst - branded corner store locations in the united states, including some in texas, couche - tard will be adding over 1, 300 new sites to its vast catalogue, which will now total nearly 14, 000 stores worldwide .
cst also controls the general partner of crossamerica partners lp, owns 100 percent of its incentive distribution rights and holds a significant equity investment in it. crossamerica distributes branded and unbranded road transportation fuel to more than 1, 100 locations in the u. s .
as part of the merger, couche - tard will sell off some of cst’s canadian operations to parkland fuel corp. for $ 750 million after the merger is complete. couche - tard expects to finance it with its available cash and new and existing loans .
it’s unclear how exactly cst’s corporate presence in san antonio and executive team will be affected by the sale. the san antonio - based company, which operates the corner store brand of convenience stores, currently leases about 83, 000 square feet of office space at 100 valero way, for its corporate headquarters. cst plans to move into its new 559, 258 - square - foot headquarters at 19500 bulverde road, which it paid $ 43 million to acquire in 2014, within the next three weeks, lubel said .
in march, under pressure from investors, cst launched a strategic review of assets that included a possible sale. suitors at the time included couche - tard, 7 - eleven parent seven & i, marathon petroleum, oxxo or a private - equity firm .
cst was spun off from valero in may 2013 and performed strongly in its brief life on the new york stock exchange as it used acquisitions to increase its footprint, building a dominant operation across the southeast u. s. and in states like texas, georgia and new york .
“in cst, we acquire a company with strategic value that will efficiently complement our network, ” couche - tard ceo brian hannasch said in a statement. “we bring in great new locations as well as expertise and experience which are likely to allow us to venture into new opportunities. ”
after the board' s comprehensive review of strategic alternatives to enhance stockholder value, we are pleased to reach this agreement with couche - tard, which we expect to provide immediate and compelling value to our stockholders ,
said kim lubel, chairman, ceo and president of cst .
the divestiture order requires act to divest 70 cst fuel stations to empire, and to give empire the option of acquiring an additional location owned by act. the fuel stations to be divested are in arizona, colorado, florida, georgia, louisiana, new mexico, ohio, and texas .
couche - tard expects to finance the all - cash transaction with available cash, its existing credit facilities and a new term loan. the transaction is currently expected to close in early 2017, subject to the approval of cst' s stockholders and regulatory approvals in the u. s. and canada .
the other ace up cst’s sleeve is that it owns the real estate for around 79% of its stores, compared to an average of 52% for its peer group. that provides the company with the potential to participate in leaseback transactions in the future and reduce the company’s fixed costs in the present .
the companies also announced today that lehigh gas partners lp has changed its name to crossamerica partners lp effective today, october 1, 2014. beginning on october 6 th, crossamerica will begin trading under the symbol “capl” and the partnership’s common units will continue to trade on the new york stock exchange. “i believe that the new name, crossamerica partners, truly reflects our combined vision of growth of cst and crossamerica across the north american continent, ” said topper. “collectively, cst and crossamerica distribute fuel to approximately 3, 000 locations in 27 states from california to virginia, florida to maine, and across eastern canada. ”
three former cst executives — stéphane trudel, senior vice president of growth and strategy; steve lattig, vice president of integration and development operations; and jeff truman, vice president of regional retail operations — will run three of couche - tard’s divisions in the u. s. and canada, the company said wednesday .
to meet antitrust requirements from u. s. and canadian regulators, couche - tard agreed to sell cst’s headquarters in montreal along with 159 corner stores in canada to parkland fuel corp. and 70 corner stores in the u. s. — including 19 in texas — to dallas - based fuel distributor empire petroleum partners.
cst brands , inc. is an american publicly traded fuel and convenience retailer . it is the second-largest of its kind in north america , with 1,900 outlets in the u.s. and canada . cst brands had 2013 revenues of about $ 12.8 billion and made approximately $ 360 million in ebitda . stores are concentrated in the central and southwestern u.s. states and in eastern canada . corner store is the firm 's primary retail brand in the us and in canada 's english speaking provinces . in canada 's french speaking provinces , dépanneur du coin is the company 's retail brand . in addition to convenience store retail sales , cst brands also sells fuel under a number of licensed energy brands such as valero , exxon , shell , and phillips 66 . the company was created on may 1 , 2013 , when valero energy corporation decided to spin off its retail operations in an effort to focus on refining . on august 6 , 2014 , cst brands agreed to buy lehigh gas gp llc , the general partner of lehigh gas partners lp ( lgp ) , from lehigh gas corp in a cash and stock deal . cst brands will also acquire the associated incentive distribution rights of lgp . the deal closed on october 1 , 2014 and lgp changed its name to crossamerica partners lp , trading under the ticker symbol " capl " . on august 22 , 2016 , alimentation couche-tard agreed to buy cst brands in a deal worth $ 4.4 billion including net debt assumed . the transaction officially closed june 28 , 2017 . 
cst brands, inc. is an american publicly traded fuel and convenience retailer. it is the second-largest of its kind in north america, with 1,900 outlets in the u.s. and canada. cst brands had 2013 revenues of about $ 12.8 billion and made approximately $ 360 million in ebitda. stores are concentrated in the central and southwestern u.s. states and in eastern canada. corner store is the firm's primary retail brand in the us and in canada's english speaking provinces. in canada's french speaking provinces, dépanneur du coin is the company's retail brand. in addition to convenience store retail sales, cst brands also sells fuel under a number of licensed energy brands such as valero, exxon, shell, and phillips 66. the company was created on may 1, 2013, when valero energy corporation decided to spin off its retail operations in an effort to focus on refining. on august 6, 2014, cst brands agreed to buy lehigh gas gp llc, the general partner of lehigh gas partners lp (lgp), from lehigh gas corp in a cash and stock deal. cst brands will also acquire the associated incentive distribution rights of lgp. the deal closed on october 1, 2014 and lgp changed its name to crossamerica partners lp, trading under the ticker symbol " capl ". on august 22, 2016, alimentation couche-tard agreed to buy cst brands in a deal worth $ 4.4 billion including net debt assumed. the transaction officially closed june 28, 2017.
cst brands, inc. is an american publicly traded fuel and convenience retailer. it is the second-largest of its kind in north america, with 1,900 outlets in the u.s. and canada. cst brands had 2013 revenues of about $ 12.8 billion and made approximately $ 360 million in ebitda. stores are concentrated in the central and southwestern u.s. states and in eastern canada. corner store is the firm's primary retail brand in the us and in canada's english speaking provinces. in canada's french speaking provinces, dépanneur du coin is the company's retail brand. in addition to convenience store retail sales, cst brands also sells fuel under a number of licensed energy brands such as valero, exxon, shell, and phillips 66. the company was created on may 1, 2013, when valero energy corporation decided to spin off its retail operations in an effort to focus on refining. on august 6, 2014, cst brands agreed to buy lehigh gas gp llc, the general partner of lehigh gas partners lp (lgp), from lehigh gas corp in a cash and stock deal. cst brands will also acquire the associated incentive distribution rights of lgp. the deal closed on october 1, 2014 and lgp changed its name to crossamerica partners lp, trading under the ticker symbol " capl ". on august 22, 2016, alimentation couche-tard agreed to buy cst brands in a deal worth $ 4.4 billion including net debt assumed. the transaction officially closed june 28, 2017.