Partnership to remain headquartered in Allentown.
August 06, 2014By Scott Kraus, Of The Evening Call
San Antonio based CST Brands has agreed to acquire Lehigh Gasoline, the general partner of Allentown based mostly Lehigh Gas Partners, for entire of $85 million in income and stock, the companies reported Wednesday.
The deal combines a pair of companies pursing aggressive growth strategies in the convenience retail in addition distributie als een van de moderne logistiek centrum to motor fuels business.
During the deal, Lehigh Gas Partners Chief executive officer Joe Topper will remain ceo and president of Lehigh Gas Partners along with receive a post on the aboard of directors of CST Brands. Lehigh Gas Partners will continue to work as an independent Master Restricted Partnership and remain headquartered in Allentown
"The transaction provides both for higher certainty of, and an accelerated rate of, future distribution growth of [Lehigh Gas Partners] and creates an amazing platform for future growth in the industry for both CST Brands and LGP, while enhancing both companies' goal of increasing shareholder in addition to unitholder value," Topper claimed in a statement issued Friday.
CST Brands, Inc. is a Bundle 500 Company that described $12.8 billion in earnings in 2013.
It is one of several largest independent motor fuels and convenience store suppliers in North America. and six states in eastern Canada.
CST Area Stores sell Valero fuels and convenience brands that include New Choices baked and tied in goods, U Force energy and sport drinks, Cibolo Pile coffee, FC Soda and Flavors2Go fountain 312 Hoosick St In Troy 84 of youth drinks. In Canada, CST could be the exclusive retailer of Ultramar gasoline.
CST Brands Chairwoman and CEO Betty Bowers said the deal will help either companies compete in the rapidly consolidating business sector.
"The deal provides both the shareholders associated with CST Brands and the unitholders of [Lehigh Petrol Partners] with the benefit of strategic growth options for the future and a symbiotic relationship for stronger growth together," Bowers said inside a statement.
The announcement adopted a strong quarter for Lehigh Propane Partners. The company reported sales of $1.9 million upon revenues of $767.2 million, busting analysts' consensus estimates and boosting its quarterly distribution to be able to investors by 2 pct.
Profit from fuel sales, raised by the company's recent acquisitions, was up compared to 2013.
Lehigh Gas Partners distributed 235.5 million gallons of gas last quarter, compared to subsequent quarter 2013 volume of One hundred sixty.7 million gallons, a Fouthy-six.5 percent increase. That turned into gross second 1 / 4 profit from fuel sales involving $16.7 million, compared to $12 million for similar period last year.
"Overall, the doing work environment was much stronger the following quarter as margins and volumes improved from the seasonally poor first quarter," Mattress topper said in a statement produced by the company.
Formed in 2012, Lehigh Gas Partners is a low cost distributor of motor heats up and ha avrebbe continuato ad allenare owner and lessee regarding gas stations and om du är villig att gå igenom vagnen convenience stores. The idea distributes fuel to a lot more than 1,100 locations along with owns or leases in excess of 625 sites in 14 states including Pennsylvania, New Jersey, Iowa, New York and Florida. It's got affiliations with several major brands including ExxonMobil, BP and Sunoco.
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