Convenience Store Portfolio Trades For $331M
TravelCenters of Americas is getting out of the convenience store business with the sale of its 225 standalone outlets.
WESTLAKE, OHIO–TravelCenters of America has entered a definitive agreement to sell its Minit Mart convenience store business for approximately $330.8 million to EG Group. The regional portfolio includes 225 standalone convenience stores and certain other related assets. TA will exit the standalone convenience store business with the transaction’s close and focus on its core travel center business.
The sale to be completed in the fourth quarter of 2018.
Andy Rebholz, TravelCenters’ CEO said that some of the growth initiatives in which it will invest in could include growing its nationwide network of travel centers, “including investing in our recently announced TA Express travel center format and pursuing new franchising opportunities.”
TA has owned the standalone convenience stores for nearly five years. The generated earnings before interest, taxes, depreciation and amortization, or EBITDA, of approximately $24.5 million during the 12 months ended June 30, 2018.
TA expects to realize net cash proceeds of $320.1 million.
Citigroup Global Markets Inc. is acting as exclusive financial advisor to TA in this transaction. Skadden, Arps, Slate, Meagher & Flom LLP is acting as legal advisor to TA in this transaction.