Dropdown transactions close between CST Brands and CrossAmerica Partners LP and CrossAmerica acquires One Stop convenience stores.
The dropdown transactions between CST Brands Inc. and CrossAmerica Partners LP have closed. The acquisitions of the real property associated with 29 new to industry stores (NTIs) and an additional 12.5% interest in CST Fuel Supply LP for aggregate consideration of $142.0 million in cash and 3.6 million newly issued common units representing limited partner interests in CrossAmerica were included in the transactions. CST Brands holds approximately 5.1 million units of CrossAmerica with the completion of transaction.
In addition, CrossAmerica announced today that it closed on the previously announced purchase of the One Stop convenience store network, based in Charleston, W.Va. The purchase includes 41 company-operated One Stop convenience stores, along with four commission agent sites, nine dealer fuel supply agreements and one freestanding franchised quick service restaurant.
All of the approximately $183.9 million of cash consideration for these transactions was financed under the Partnership’s credit facility. The Partnership expects the acquisitions to be accretive to distributable cash flow to limited partners.
The independent executive committee of the board of directors of CST Brands and the independent conflicts committee of the board of directors of the general partner of CrossAmerica have, as applicable, approved the terms of the dropdowns of the 29 NTI stores and 12.5% interest in CST Fuel Supply from CST Brands to CrossAmerica.
