Speedway's GasAmerica Purchase Means Less Competition in Indiana
INDIANAPOLIS -- Drivers is Indiana could be in for sticker shock next time they visit a gas station. Some industry analysts believe the recent Speedway LLC and GasAmerica Services Inc. deal will translate into higher gas prices across the state.
The revelation comes less than a week after Ohio-based Speedway inked an agreement to acquire the GasAmerica convenience store/gas station chain. The 88-site portfolio includes 74 locations in Indiana and 14 in Ohio. The transaction is expected to close by the end of May, subject to regulatory approvals, customary due diligence and other closing conditions, as CSNews Online previously reported.
The majority of the locations will be converted to the Speedway brand once the transaction is completed. As part of the purchase agreement, Speedway will also acquire all trademarks, trade dress and intellectual property from GasAmerica.
Speedway spokesman Shane Pochard declined to tell the Indianapolis Star whether all of the GasAmerica stations will remain open or if some will close because of their proximity to existing Speedway locations. He also declined to say how many of the 1,000 GasAmerica employees will be retained or how many stations/c-stores might be remodeled with the Speedway brand.
This is not the first time Speedway has acquired other smaller, regional chains, according to industry analysts. Nor will it, most likely, be the last, the news outlet reported.
"Speedway is looking to acquire other chains, and they have a lot of cash to do it, so it will mean a boost to their bottom line and better earnings," said GasBuddy.com senior analyst Patrick DeHaan. The deal likely will also mean higher fuel prices. "Less competition is always bad" for the consumer, DeHaan added.
Before this most recent deal, Speedway's portfolio consisted of about 1,375 locations throughout the Midwest, including 240 in Indiana.