TravelCenters of America has sold its freestanding convenience stores.
The company has entered into an agreement to sell its Minit Mart convenience store business for approximately $330.8 million to EG Group, privately held convenience store retailer based in the United Kingdom. The Minit Mart portfolio includes 225 standalone convenience stores and certain other related assets.
The agreement marks EG’s latest expansion move in the United States. In April, it completed its $2.15 billion purchase of Kroger Co.’s convenience store business, and established a North American headquarters in Cincinnati.
TravelCenters said the sale, which is expected to be completed in the fourth quarter of 2018, will enable it focus on its core travel center business. The company plans to use the net proceeds from the deal to reduce leverage and/or invest in travel center growth initiatives.
“We expect some of these growth initiatives may include expanding our industry leading truck service program and growing our nationwide network of travel centers, including investing in our recently announced TA Express travel center format and pursuing new franchising opportunities,” said Andy Rebholz, CEO, TravelCenters.
The Minit Mart stores have been a part of TravelCenters' business for about five years.
The Minit Mart portfolio generated earnings before interest, taxes, depreciation and amortization, or EBITDA, of approximately $24.5 million during the 12 months ended June 30, 2018.
TravelCenters of America operates in 43 states and in Canada, principally under the TA and Petro Stopping Centers travel center brands and the Minit Mart convenience store brand.