Travel Centers of America is acquiring 31 convenience stores with retail gasoline stations (“C-stores”) for $67 million, before closing costs and customary working capital adjustments. The seller is a private company that operates these C-stores under its proprietary brand name Minit Mart.
Twenty-eight of the C-stores are located in Kentucky and three are in Tennessee. Twenty-seven of the locations include the ownership of land and buildings, while four are leaseholds. The typical location includes ten fueling positions and about 5,000 square feet of interior space offering C-store merchandise as well as some prepared food services. Last year, these stores dispensed an aggregate of 38 million gallons of fuel.
Thomas M. O’Brien, TA’s president and CEO, said, “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.
“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.”
O’Brien said TA’s principal business focus remains on operating and expanding its nationwide network of large, full-service travel centers along the U.S. highways that serve the U.S. trucking industry.”