Market Expansion Plans Drive Speedway, Road Ranger Deal
ENON, Ohio -- The deal announced today between Speedway LLC and Road Ranger LLC is a win-win for both sides. Speedway, the retail arm of Marathon Petroleum Corp., will add 10 convenience store/gas stations in its markets, while Road Ranger will continue to build its truck stop portfolio.
As CSNews Online reported in a Breaking News alert, Speedway reached an agreement with Road Ranger to acquire 10 retail locations in Ohio and Kentucky in exchange for cash and a truck stop location in the Chicago metropolitan area. Neither side attached a value to the cash end of the deal.
"This deal is the right opportunity to grow strategically in our market area," Shane Pochard, a Speedway spokesman, told CSNews Online. He added that the locations allow the retail chain to better serve its customers.
Speedway has been following a strategic growth path over the past few years and just two weeks ago, finalized its acquisition of GasAmerica Services Inc. That agreement brought 87 retail locations to Speedway's 1,400-plus location portfolio.
"Speedway is continuing to grow and evaluate our opportunities that meet our needs within our market area," Pochard said.
As for the truck stop swap, Pochard explained that from Speedway's standpoint, the truck stop is more of a strategic fit for Road Ranger, a Rockford, Ill., company with gas stations, travel centers and convenience stores.
Road Ranger agrees. "The sale of the convenience stores in Kentucky and Ohio allows Road Ranger to expand into other markets, and continue its focus and growth in truck stops," Steve Brooks, Road Ranger's general counsel and vice president of human resources, told CSNews Online.
In addition to the Chicago area truck stop included in the Speedway deal, Brooks said Road Ranger is under contract to acquire additional truck stops in the Illinois and Wisconsin areas. The company also has plans for additional new-to-the-industry truck stops in the near future, he noted.