The deal has rippled through the travel center industry. Pilot has also reached an agreement with Love's Travel Stops & Country Stores Inc. for that chain to purchase 26 [image-nocss] locations from Pilot. And ConocoPhillips and Pilot have completed the sale of ConocoPhillips' 50% partnership interest in the CFJ Properties Flying J truckstops to Pilot Travel Centers for $626 million. The transactions also include long-term product supply agreements with Pilot.
"We are now one great company, two great brands," said Pilot Flying J president and CEO Jimmy Haslam. "Our new organization is a combination of two of the best-known brands in the travel center industry, both with strong family histories and shared values. So, whether you are a professional driver, a trucking company, a business traveler, a family on vacation or a nearby resident, our new company is ready to serve your interstate fueling, dining or other consumer needs. We look forward to a bright future as our customers' preferred stop for highway hospitality."
According to Crystal Call Maggelet, chairman of the board of Flying J, "The merger is a historic moment in our industry. It will be exciting to see our more than 550 locations come together, providing a complete North American network of travel centers. Our customers will benefit through new and expanded services. Outstanding customer service will continue to be a top priority at the new company."
The Federal Trade Commission (FTC) terminated the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, on June 30, and the combination becomes effective July 1. In July 2009, Pilot and Flying J announced a preliminary agreement to merge the respective travel center operations.
Customers still will see the Pilot and Flying J brands on signage at the interstate facilities. Pilot has begun to accept the TCH card, and Flying J has begun to accept Comdata cards. This change gives the trucking community many more options of where to fuel that are not dependent on the card they carry.
Other plans call for enhanced restaurant offerings with national brands in all locations. Brand additions to Flying J locations in the new network include Denny's, Subway and Pizza Hut. In addition, there will be upgrades to drivers' lounges, new gasoline and diesel pumps, enhanced showers and remodeled restrooms at many locations.
Pilot Flying J is selling the 26 locations to Love's as required by the FTC as a condition for the merger. For a list of the affected locations and for additional information about the merger, visit www.pilotflyingj.com.
Oklahoma City-based Love's has 260 locations in 38 states. "We recognized that purchasing this group of locations would accelerate our growth strategy, particularly in terms of moving into new markets," said Love's Founder and CEO, Tom Love. "It's an opportunity for us to provide key locations for our customers, in a very short time."
Houston-based ConocoPhillips said the sale of its partnership interest is consistent with its overall U.S. marketing strategy, which is to minimize company ownership of motor fuel stations while securing long-term markets for refined products from ConocoPhillips refineries.
"We're pleased to conclude this transaction and to have a long-term fuel supply relationship with Pilot, which affords ConocoPhillips the ability to provide an outlet for ConocoPhillips' gasoline and diesel production," said Willie Chiang, senior vice president of refining, marketing and transportation.
This transaction is another step in the execution of the ConocoPhillips $10 billion asset divestiture program, the company added.
Meanwhile, Flying J closed its Flying J E-Store online commerce website, the company announced on Facebook and Twitter earlier this week. The online store sold a wide variety of merchandise including audio books, CBs, camping gear, computers, electronics, gifts, movies, radios, tools, truck accessories and more mainly to truckers and other drivers.
The announcement said, "Due to changing business needs and the pending Pilot merger, we are closing the Flying J E-Store, effective Thursday, July 1, 2010. You can still use unexpired loyalty points at Flying J restaurants and at Flying J delis in locations without a restaurant. Please visitwww.flyingjestore.com for additional details."
Pilot had its own e-commerce website, the Pilot E-Store, at www.pilotestore.com.
Flying J announced its Chapter 11 bankruptcy filing in December 2008. (Click here for details.)
Flying J and Pilot Travel Centers LLC announced in July 2009 that they have entered into a preliminary merger agreement that will provide a framework for Flying J's core travel plaza business to emerge from bankruptcy protection. (Click here for details.)
Privately held Flying J, headquartered in Ogden, Utah, had a network of approximately 270 travel centers nationwide. Pilot Travel Centers, headquartered in Knoxville, Tenn., had a network of more than 300 travel centers in 41 states. It held in a partnership between Pilot Corp., wholly owned by the Haslam family, and Propeller Corp., wholly owned by the funds advised by CVC Capital Partners, a leading global private-equity firm.
The new Pilot Flying J is headquartered in Knoxville and has more than 550 locations in North America. The company employs more than 20,000 people and is the largest retail operator of travel centers in North America.
(Click here for previous CSP Daily News coverage.)
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