CST Brands has sold nearly 80 stores to 7-Eleven.
The previously announced transaction between CST Brands Inc. and 7-Eleven Inc. has been completed. Through the transaction, CST Brands has sold all 79 of its stores in the California and Wyoming markets to 7-Eleven Inc. and its wholly-owned subsidiary, SEI Fuel Services Inc.
The closing purchase price for the transaction is $408 million plus adjustments for inventory and working capital. With the closing of this transaction, CST 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 anticipates using the majority of the cash proceeds from the sale to pay down borrowings under CST’s revolving credit facility.
Raymond James advised CST Brands Inc. in the transaction.