CST Brands, Inc., 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.
“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 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.