CST polishes off $408M deal with 7-Eleven (but restrictions apply)

Corner Store makes $408 million deal to sell sites in California and Wyoming.

CST Brands Inc. announced two deals — a finalized one that brings in $408 million, and another that refunds it back out.

The San Antonio-based Corner Store operator finalized its deal to sell all 79 of its stores in California and Wyoming to fellow convenience store retailer 7-Eleven Inc. The closing purchase of the transaction was $408 million. But CST isn’t keeping all of it.

To compensate CrossAmerica Partners LP — a motor fuel distributor that has a 17.5 percent interest in CST’s wholesale fuel business — CST has agreed to refund $18.2 million of the purchase price for the decrease in revenues.

The refund is essentially a portion of the 2015 purchase price CrossAmerica paid for its ownership interest in CST’s fuel operations, and relates to the approximately 191 million gallons sold to the 76 locations in California and three locations in Wyoming.

CST has been faced with mounting pressure from investors, concerned that the company isn’t taking advantage of its full potential to increase stock value. That pressure ultimately led to the implementation of a strategic review, which is still under way.

Click here to read the full article: CST polishes off $408M deal with 7-Eleven (but restrictions apply) San Antonio Business Journal (6-8-2016)