CST Brands Inc. (CST) and CrossAmerica Partners LP (CAPL) (the “Partnership”) have announced the closing of the previously announced acquisition of Nice N Easy Grocery Shoppes.
Based in Canastota, N.Y., Nice N Easy operates 77 corporate and franchise stores in Central New York. Nice N Easy has been at the forefront of the foodservice growth in convenience stores with the presence of its own Easy Street Eatery concept in many of its corporate stores.
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. Both parties expect the transaction to be accretive. 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. These 24 sites distributed approximately 40.3 million gallons in 2013.
“I want to welcome the dedicated employees of Nice N Easy to the CST organization,” said Kim (Bowers) Lubel, chairman and CEO of CST Brands. “We have great respect for the business that Nice N Easy founder, the late John MacDougall, and his team built over the years and look forward to working with and learning from this experienced group.”
“We are excited to execute our first joint transaction with CST,” said CrossAmerica Partners President and CEO Joe Topper. “The transaction provides the Partnership with a stable source of wholesale fuel and rental income and illustrates the potential growth of the Partnership with CST through third party acquisitions.”
The independent conflicts committee of the board of directors of the general partner of the Partnership has approved the total consideration, subject to adjustment, paid by CrossAmerica for the assets. The Partnership funded the transaction through funds available under its credit facility and CST Brands utilized available cash.