In this UPDATE to a November story, TravelCenters of America LLC has just completed its acquisition of thirty-one convenience stores spread across Kentucky and Tennessee for $67.9 million, including closing costs and customary working capital adjustments. TA will continue to operate these “C-stores,” which include retail gasoline stations, under the proprietary brand name “Minit Mart.” Twenty-eight of the outlets are in Kentucky and three are in Tennessee. Twenty-seven include the ownership of land and buildings and four are leaseholds.
Company officials say “the closing amount is subject to a customary post-closing adjustment based on the final working capital balance, but TA currently expects that any such adjustment will not be material.”
The original story appears below:
WESTLAKE, OH—Minit Marts have been a fixture on the Kentucky landscape since the 1970's, providing convenience and grocery shopping, as well as Marathon gasoline, to generations of customers. Now, Travel Centers of America LLC has agreed to acquire 31 of the stores for $67 million, before closing costs and customary working capital adjustments. The seller is the private company which operates the outlets under the Minit Mart brand name.
Twenty-eight of these combination convenience and gas outlets, or C-stores, are in Kentucky and three are in Tennessee. Twenty-seven of the purchased properties locations include the ownership of land and buildings, while four are leaseholds. A typical Minit Mart includes ten fueling positions and about 5,000-square-feet of interior space offering merchandise as well as some prepared food. For years, many Minit Marts have included O'Deli's sub shops and Godfather's Pizza. During 2012, the purchased stores dispensed a total of 38 million gallons of fuel.
“The 31 C-stores TA has agreed to acquire are high volume fuel locations with larger interior space for merchandise and food offerings than typical C-stores and appear to have limited need for near term capital investment,” said Thomas M. O'Brien, TA's president and CEO. “In addition, we do not expect these C-stores to require a lengthy period to achieve stabilized financial results. We also expect TA may be able to realize synergies in purchasing and merchandising customer offerings at these C-stores which may make the financial results, relative to the acquisition cost, similar to that expected for travel center acquisitions. Nearly all of TA's existing travel centers currently offer gasoline for motorists and most of these C-stores' customer offerings are similar to the products and food services available at our highway travel centers.”
“TA's principal business focus is and remains operating and expanding its nationwide network of large, full service travel centers along the U.S. Interstate Highway System that serve the U.S. trucking industry.”
The transaction is subject to customary closing conditions, but company officials say they expect it will close before the end of the year. TA operates and franchises diesel and gasoline fueling outlets, restaurants, truck repair facilities, stores and other services in 42 U.S. states and in Canada.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
