ENON, Ohio & ROCKFORD, Ill. -- Speedway LLC's acquisition of 10 convenience stores in Kentucky and Ohio from Road Ranger LLC was a growth opportunity that played to the specific strategy of each of the parties involved.
As reported in a Raymond James/CSP Daily News Flash yesterday, Speedway picked up 10 sites in one of its markets, and Road Ranger--while shrinking its total number of sites--grew its truckstop count by an additional location in the Chicago metropolitan area, along with an undisclosed amount of cash to sweeten the pot.
Nine of the sites are in Kentucky, and one is in Ohio.
"They are mostly in the Covington Ky., area and Franklin, Ohio," Steve Brooks, general counsel and vice president of human resources at Road Ranger, told CSP Daily News.
"The strategy--as you saw with the GasAmerica purchase by Speedway--that Speedway is aggressively interested in growing, and when opportunities come up in our market area, it's something we evaluate very closely," Speedway spokesperson Shane Pochard told CSP Daily News. "So when this opportunity came up in northern Kentucky and southern Ohio, it fit Speedway's strategy in the market area--it was just a good fit."
Speedway signed an agreement in February to acquire 88 GasAmerica Services Inc. locations in Indiana and Ohio (see Related Content below for previous CSP Daily News coverage).
Pochard would not share the cash price tag on the Road Ranger deal.
"For us, it allows us to continue to focus our growth on the truckstop side of the business," said Brooks. "It's an opportunity for us to grow."
Road Ranger also has partnered with Knoxville, Tenn.-based Pilot Flying J's Pilot Travel Centers at more than 20 travel centers and truckstop locations.
He also would not discuss the Speedway transaction's cash price tag.
Speedway, based in Enon, Ohio, owns and operates the nation's fourth largest convenience store chain, with approximately 1,460 locations in seven states in the Midwest. Speedway is an indirect wholly owned subsidiary of Marathon Petroleum Corp (MPC).
Road Ranger is a privately held truckstop and gasoline convenience store operator based in Rockford, Ill. Before this deal, it had approximately 80 locations in seven Midwestern states-- Missouri, Illinois, Indiana, Wisconsin, Iowa, Kentucky and Ohio. Road Ranger is the Founding Sponsor of the American Wild Horse Preservation Campaign.
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