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Log In / Register | May 21, 2018

Sources Say Couche-Tard, Private Equity Consortium, Others, Vying for CST Brands

CST Brands [CST:NYSE], a chain of convenience stores and gas stations in the U.S. and Canada, is being actively considered for acquisition by Canada's Alimentation Couche-Tard Inc. [ATDb:Toronto], an international convenience store chain, and other parties, among which is a consortium of private equity firms that includes Blackstone Group LP [BX:NYSE] and Apollo Global Management LLC [APO:NYSE]. This is according to informed sources, reports Reuters. CST, Couche-Tard, Blackstone and Apollo had not made any public announcements at the time Reuters published the story.

These acquisition preliminaries fit into an ongoing wider trend among convenience store chains to consolidate in an attempt to improve low profit margins and economies of scale.

CST will seek at least one more round of offers before deciding if will sell itself, the people [anonymous informed sources] cautioned. The sources asked not to be named because details of the sale process are confidential.

…CST has been working with investment banks JP Morgan Chase & Co (JPM.N) and Bank of America Corp [BAC:NYSE] to explore a sale after coming under pressure from activist investors JCP Investment Management and Engine Capital LP. — Lauren Hirsch, Reuters

Japan's Seven & i Holdings [3382:Tokyo], owner of the 7-Eleven brand, had been mentioned as interested in bringing CST under its umbrella, but has since denied any interest in buying the entire CST company. Earlier this year it did buy 79 CST stores, 76 of which were in California, with the remaining 3 in Wyoming.




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