CST Brands

CST Brands, Inc.

Company type	Public
Industry	Retail (fuel and convenience stores)
Founded	May 1, 2013 (2013-05-01)
Defunct	June 28, 2017 (2017-06-28)
Fate	Acquired by Alimentation Couche-Tard
Headquarters	San Antonio , United States
Area served	United States, Canada
Products	Fuel, convenience store merchandise (snacks, tobacco, beverages, fresh food)
Number of employees	12,000

Overview

CST Brands, Inc. operated as a publicly listed American retailer specializing in fuel and convenience stores. Ranking as the second-largest entity in North America within its sector, it managed approximately 1,900 locations across the United States and Canada. In 2013, CST Brands reported revenues near $12.8 billion alongside an EBITDA of roughly $360 million. The company's retail outlets were predominantly situated in the central and southwestern regions of the U.S., as well as in eastern Canada. In the United States and English-speaking Canadian provinces, the primary retail banner was Corner Store, whereas in French-speaking areas of Canada, the brand operated under the name Dépanneur du Coin. Beyond convenience retailing, CST Brands marketed fuel through several licensed energy trademarks including Valero, Exxon, Shell, and Phillips 66.

Formation and Expansion

The inception of CST Brands occurred on May 1, 2013, following Valero Energy Corporation’s decision to divest its retail segment to concentrate on refining operations. Subsequently, on August 6, 2014, CST Brands reached an agreement to acquire Lehigh Gas GP LLC—the general partner of Lehigh Gas Partners LP (LGP)—from Lehigh Gas Corp via a combined cash and stock transaction. This acquisition also encompassed the Incentive Distribution Rights tied to LGP. The deal finalized on October 1, 2014, after which Lehigh Gas Partners LP was renamed CrossAmerica Partners LP and began trading under the ticker "CAPL."

Acquisition by Alimentation Couche-Tard

On August 22, 2016, Alimentation Couche-Tard—the parent company behind Circle K—entered into a merger agreement to purchase more than 2,000 CST locations. The all-cash deal was valued at $4.4 billion, inclusive of net debt assumed. This transaction reached completion on June 28, 2017. Following the acquisition, former CST retail brands such as Corner Store, Flash Foods, and Nice N Easy Grocery Shoppes underwent rebranding and remodeling efforts to align with the Circle K identity.

Overview

CST managed a network exceeding 1,000 Corner Store convenience outlets across the United States, spanning states such as Texas, Louisiana, Arkansas, Oklahoma, New Mexico, Colorado, Wyoming, Arizona, and California. On November 4, 2014, CST Brands announced the acquisition of Nice N Easy Grocery Shoppes' assets, a New York-based enterprise operating more than 30 stores under company management. In November 2015, CST finalized an agreement to acquire Flash Foods from the Jones Company, a convenience store chain headquartered in Waycross, Georgia, which operated 164 locations with retail fuel services in Georgia and North Florida.

Within Canada, CST distributed Ultramar fuel products through a network of over 840 retail outlets located in Quebec, the Atlantic provinces, and eastern Ontario. The company also ranked among the top retail suppliers of home heating oil in Eastern Canada. This distribution system featured 80 card lock facilities strategically positioned along major trucking corridors and industrial zones to provide 24/7 fueling access to commercial trucking and fleet operators. Following CST's acquisition by Couche-Tard in 2016, the majority of Ultramar operations were sold to Parkland Corporation; however, Couche-Tard retained 36 stations which were subsequently rebranded as Irving stations integrated with Circle K.

The workforce of CST consisted of roughly 12,000 employees across the Southwestern U.S. and Eastern Canada regions. This included a staff of over 400 at the corporate headquarters in San Antonio, Texas, alongside more than 250 personnel at the regional office based in Montreal, Canada.

Products

File:VALERO CORNER STORE.JPG

CST Brands Corner Store located at UTSA Blvd. and IH10W in San Antonio

Corner Store's merchandise lineup included a variety of items such as snacks, tobacco, beverages, and fresh food options. The brand featured proprietary products like Fresh Choices sandwiches, salads, and packaged goods; U Force energy drinks; Cibolo Mountain coffee (distributed in the United States); Transit Cafe coffee and baked goods (available in Canada); FC bottled sodas; and Flavors 2 Go fountain beverages. Certain Corner Store outlets also housed Subway sandwich franchises within the premises.

Within these stores, CST expanded its private-label signature product range by adding 14 new items. Additionally, sales of Corner Store’s well-liked freshly baked goods experienced growth, with over 1.2 million whoopie pies and 4.6 million kolaches sold during 2013. To leverage the success of its whoopie pies further, the company launched a food truck to promote these treats at various festivals and events across CST’s operating regions.

Competitors

CST competed in a dynamic market alongside major convenience store chains such as 7-Eleven, Casey's General Stores, The Pantry, and its eventual parent company Couche-Tard. By 2014, CST ranked as the third-largest chain, operating approximately 1,900 locations.