CST Brands puts itself up for sale

Convenience store chain CST Brands has addedtwo new independent directors to its board and announced it plans to pursue “strategic alternatives” that could include selling the company.

The company says the strategic review process will be comprehensive and will include a fresh look at several of CST's previously announced strategic initiatives and plans.

"We believe there continues to be a disconnect between CST's intrinsic value and the price of our common stock in the public equity markets," saidKim Lubel, president and CEO of CST Brands. "For this reason, our board is initiating a process to explore and evaluate a wide range of strategic alternatives to maximize value for our stockholders."

The company also appointed Thomas W. “Tad” Dickson, former chairman of the board of directors of The Pantry, Inc., and Rocky B. Dewbre, former senior executive with Sunoco LP, to the CST board of directors, effective immediately.

“We are delighted to welcome Rocky and Tad to the CST Board,” said Lubel. “Over the past several months, one of our major goals as a Board has been to add key skill sets and further diversify and strengthen our Board’s breadth of experience. These outstanding executives are tremendous resources in providing valuable industry experience and insight into our corporate strategies and assisting with the Board’s review of alternatives to enhance stockholder value.”

Since the beginning of 2014, CST has opened more than 100 new stores and secured additional locations that will enable it to construct 120 new stores this year and next. Within the next five years, CST has said it will open 350 stores that are new to the industry.

In addition, the company expanded its footprint into a new geographic area with the acquisition last fall of Flash Foods, an operator of 164 locations in Florida and Georgia. More recently, CST Brands announced plans to explore the possible creation of a real estate venture that would allow the company to unlock the underlying value of its real estate in a sale/leaseback arrangement.

CST Brands Inc. is one of the largest independent retailers of motor fuels and convenience merchandise in North America. Based in San Antonio, Texas, CST employs over 14,500 Team Members at over 2,000 locations throughout the Southwestern United States, Georgia, Florida, New York and Eastern Canada.