BLACKBURN, U.K., andWESTLAKE, Ohio -- EG Group has acquired TravelCenters of America LLC’s Minit Mart convenience-store business for approximately $330.8 million. The portfolio TA has agreed to sell to the U.K. forecourt retailer includes 225 stand-alone convenience stores and certain other related assets.
The sale will enable TA to exit the stand-alone c-store business and focus on its core travel-center business. The company expects to use the net proceeds from the sale to reduce leverage and invest in travel-center growth initiatives, including expanding its nationwide network of travel centers, investing its new TA Express travel-center format and pursuing new franchising opportunities, said TA CEO Andy Rebholz.
The companies expect the sale to be completed in fourth-quarter 2018. The transaction is subject to regulatory approval and customary closing conditions.
Earlier this year, Blackburn, U.K.-based EG Group acquired the 762-site c-store business in the United States from The Kroger Co., Cincinnati, operating under the Turkey Hill, Loaf ‘N Jug, Kwik Shop, Tom Thumb and Quik Stop banners. With the inclusion of the Minit Mart portfolio, EG Group will own and operate approximately 1,000 sites in the United States. The Minit Mart deal secures EG Group’s place among the top 10 of CSP’s 2018 Top 202 U.S. c-store chains by number of company-owned retail outlets.
“We have a firm commitment to growing our presence in the USA, the world’s largest convenience market, and are extremely pleased to have signed definitive transaction documents to acquire the Minit Mart network from TravelCenters. The Minit Mart portfolio will be a strong addition to our business,” said Mohsin Issa, co-founder and co-CEO of EG Group.
“For the past 17 years, we have had a vision of becoming a leading gas-station/convenience-store operator around the world. This is another exciting international milestone on our growth journey,” said Zuber Issa, co-founder and co-CEO. “The Minit Mart acquisition will underpin a more sustainable network, allow us to explore further real estate development prospects and more importantly provide further growth opportunities in the USA.”
TravelCenters of America operates 256 travel centers along the U.S. Interstate Highway System in 43 states and the province of Ontario in Canada, 231 c-stores in 11 states and stand-alone restaurants in 13 states. The Westlake, Ohio-based company's travel centers operate under the TravelCenters of America, TA, Petro Stopping Centers and Petro names and offer diesel and gasoline fueling, full-service and quick-service restaurants (QSRs), truck maintenance and repair services and c-stores and other goods and services for professional drivers and other motorists.
EG Group is an independent fuel and convenience retailer with a diversified portfolio of sites in eight European countries and the United States. It operates nearly 5,000 sites globally, generating revenues of more than $20 billion. On the fuel side, it partners with Esso, BP, Shell and Texaco. In convenience retail, the business has cultivated relationships with Carrefour, Spar and Louis Delhaize, with food-to-go partners including Starbucks, KFC, Burger King and Subway.
Photograph courtesy of EG Group