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CANASTOTA, N.Y. — Nice N Easy Grocery Shoppes is now part of the CST Brands Inc. and CrossAmerica Partners LP family. The acquisition was first revealed in late August.
CST Brands and CrossAmerica, a master limited partnership, closed on its joint purchase of the assets of Nice N Easy on Nov. 3. Under the terms of the deal, CrossAmerica is taking 23 fee sites, as well as certain fuel distribution assets for $65 million. CST Brands purchased the retail operations at the 32 company-operated sites and certain other assets. Both parties expect the transaction to be accretive to earnings.
CrossAmerica, formerly known as Lehigh Gas Partners LP, will lease the acquired real estate to CST and provide wholesale fuel supply to 24 Nice N Easy sites under long-term agreements. These 24 sites distributed approximately 40.3 million gallons of fuel in 2013.
Canastota-based Nice N Easy operates 77 corporate and franchise stores in central New York. The chain has been at the forefront of foodservice growth in convenience stores with the presence of its own Easy Street Eatery concept in many of its corporate stores.
"I want to welcome the dedicated employees of Nice N Easy to the CST organization," said Kim Lubel, chairman and CEO of CST Brands. "We have great respect for the business that Nice N Easy founder, the late John MacDougall, and his team built over the years and look forward to working with and learning from this experienced group."
The Independent Conflicts Committee of the board of directors of the general partner of the partnership has approved the total consideration, subject to adjustment, paid by CrossAmerica for the assets. The partnership funded the transaction through funds available under its credit facility, and CST Brands utilized available cash.
"We are excited to execute our first joint transaction with CST," said Joe Topper, president and CEO of CrossAmerica Partners. "The transaction provides the partnership with a stable source of wholesale fuel and rental income and illustrates the potential growth of the partnership with CST through third-party acquisitions."
CST Brands Inc. is a Fortune 500 company, based in San Antonio. It employs nearly 12,000 team members at nearly 1,900 locations throughout the southwestern United States and eastern Canada, offering a broad array of convenience merchandise, beverages, snacks and fresh food.
CST also owns the general partner of CrossAmerica Partners LP, a master limited partnership and wholesale distributor of motor fuels, based in Allentown, Pa.
CrossAmerica Partners is a wholesale distributor of motor fuels, and owner and lessee of real estate used in the retail distribution of motor fuels. Its general partner, CrossAmerica GP LLC, is a wholly owned subsidiary of CST Brands. Formed in 2012, CrossAmerica Partners distributes fuel to more than 1,100 locations and owns or leases more than 625 sites in 16 states: Pennsylvania, New Jersey, Ohio, Florida, New York, Massachusetts, Kentucky, New Hampshire, Maine, Tennessee, Maryland, Delaware, Illinois, Indiana, West Virginia and Virginia.