OVERLAND PARK, Kansas -- In an effort to restructure its balance sheet, GasMart USA Inc. said that it has sold its 19 gas station convenience stores in the greater Kansas City, Mo., area. TravelCenters of America LLC, operator of the TA and Petro Stopping Centers travel center and the Minit Mart convenience store brands, paid $27 million for the stores.
The transaction, in addition to two other sales currently under contract, concludes a six-month sale process conducted by GasMart in its efforts to restructure its balance sheet as well as facilitate the retirement of one of its founders, Jim George.
With its origins in 1995, the George Family combined with members of the Gustin Family, including one of the founders of Applebee's International Inc., Abe Gustin, to develop the chain by completing construction of its first store in 1996. Since that time, GasMart has gone through a number of acquisitions and divestitures of stores in seven states.
With this sale as well as others under contract, GasMart and its affiliates will have 42 stores, including six leased locations. Other businesses owned and operated by GasMart and its affiliates include an expanding wholesale fuel business as well as a fuel transportation concern with its own fleet of trucks.
"We are extremely pleased with all aspects of the transaction," said David George, president of GasMart. "For GasMart in particular, the sale means that we have dramatically deleveraged our company. Our balance sheet is much, much stronger, and now we can focus on improving the operating performance of our remaining locations.
He continued, "As part of this process, the shareholders of GasMart, including surviving members of the Gustin Family, agreed to retain John Tittle Jr. as our new chief executive officer. We were very pleased with Mr. Tittle's efforts in conducting the sale process and elected to appoint him as CEO. John has a 30-plus year background in providing turnaround, financial advisory and M&A services to clients across a broad range of industries, including a number of companies in the gasoline/convenience-store space."
Tittle said, "GasMart has a collection of great fee-simple properties that had been overleveraged. This led to cash flow problems and an inward focus on the part of management. This inward focus is now being transformed with the culture to be positive, market driven and results oriented. I look forward to working with our great group of employees, suppliers and constituents to make this happen."
GasMart USA, Overland Park, Kansas, is a high-volume distributor of primarily branded motor fuel that operates 44 convenience-store and gas-station locations in Illinois, Wisconsin, Indiana, Iowa and Nebraska.
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