CST Brands Inc. has closed the previously announced acquisition of the Flash Foods convenience stores from the Jones Co. and its affiliates.
Based in Waycross, Ga., the Jones Co. and its affiliates operate 165 stores in the Georgia and Florida markets.
“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.”
The company expects the transaction to be accretive.
The closing of the transaction was funded by cash on hand and borrowings under the company’s revolving credit facility. The company recently amended its revolving credit facility to increase total commitments from $300 million to $500 million. The company anticipates recognizing certain tax benefits through a like-kind exchange of real property acquired in this transaction, including the real property that may be sold later this year as a result of the previously announced California network strategic review.
The Jones Co. 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.
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 over 14,000 Team Members at over 2,000 locations throughout the Southwestern United States, Georgia, Florida, New York and Eastern Canada.