CST Brands agrees to acquire Flash Foods' store network

CST Brands Inc., a San Antonio-based Fortune 500 fuel and convenience retailer, said it entered into a definitive agreement to acquire the Flash Foods store network of convenience stores in Georgia and Florida from the Jones Co. and its affiliates.

The acquisition includes 164 Flash Foods convenience stores selling Flash Foods-branded fuel located in Georgia and Florida; 21 branded Quick Service Restaurants, including three standalone locations; a land bank of 13 real estate sites to build new-to-industry stores; a merchandise distribution company and a 90,000 square foot distribution center that it operates in Georgia; and a fuel supply company with access to the Colonial and Plantation Pipelines and leased storage and company-owned transportation fleet, CST Brands said.

The purchase price for the transaction is $425 million, and the company said it expects the transaction to be accretive. The transaction is expected to close in the first quarter of 2016.

On its website, Flash Foods says it distributes its own grocery products and motor fuels with its own transports to its retail locations. Among the company's proprietary brands is the Cumberland Island coffee brand — the retailer boasts five varieties under the brand and sells more than 250,000 pounds of the coffee each year.

CST Brands is one of the largest independent retailers of motor fuels and convenience merchandise in North America. The company said it operates approximately 1,900 locations throughout the United States and Eastern Canada. Its Corner Stores locations offer private brand products such as Fresh Choices baked and packaged goods, UForce energy and sport drinks, Cibolo Mountain coffee, FC bottled sodas and Flavors2Go fountain drinks. In Canada, CST is the exclusive provider of Ultramar fuel and its Dépanneur du Coin and Corner Stores locations sell signature Transit Café coffee and pastries.