CST Brands Inc. (NYSE: CST) is buying Lehigh Gas GP LLC in a deal valued at $85 million as car sales have increased.
Allentown, Pennsylvania-based Lehigh distributes motor fuels and owns and leases real estate used for motor fuel distribution. Lehigh Gas Partners (NYSE: LGP), the seller and general partner of the target, distributes fuel to more than 1,050 locations.
CST, headquartered in San Antonio, Texas, sells motor fuels under the Valero brand and convenience merchandise in North America, including beverages and snacks.
The purchase price works out to $17 million in cash and 2.044 million shares of CST common stock.
Bank of America Merrill Lynch was CST's financial adviser, while Paul Hastings LLP provided legal counsel. Barclays was Lehigh's financial adviser and Skadden Arps Slate Meagher & Flom LLP provided legal advice.
Car sales have been up in 2014. Recent car-related transactions include Hellman & Friedman LLC's deal for collision-repair chain Abra Auto Body & Glass and AGM Automotive LLC's purchase of Chicago Miniature Lighting LLC, an automotive lighting supplier.