CST Brands Announces Merger With Alimentation Couche-Tard

The $4.4. billion transaction is expected to close in early 2017.

August 23, 2016

SAN ANTONIO – CST Brands, one of the largest independent convenience and fuel retailers in North America, announced that its board of directors unanimously approved a $4.4 billion cash merger transaction with Alimentation Couche-Tard Inc.

“After the board’s comprehensive review of strategic alternatives to enhance stockholder value, we are pleased to reach this agreement with Couche-Tard, which we expect to provide immediate and compelling value to our stockholders,” said Kim Lubel, chairman, CEO and president of CST. “With Couche-Tard, we will build upon an extensive and attractive convenience and fuel network with enhanced scale and global reach to best position the combined company for future growth. Importantly, our employees will benefit from new opportunities for career development as part of a larger, global company.”

Upon completion of the transaction, Circle K will establish a new business unit in San Antonio with attached shared services operations.

CST also owns the general partner of CrossAmerica Partners LP, a master limited partnership and wholesale distributor of fuels, based in Allentown, Pennsylvania. By combining Couche-Tard’s U.S. dealer network of approximately 700 sites and CrossAmerica’s network of more than 1,000 locations, the combined organization will be one of the largest wholesale fuel distributors in the United States.

The transaction is currently expected to close in early calendar year 2017, subject to the approval of CST's stockholders and regulatory approvals in the United States and Canada.

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