WESTLAKE, Ohio — TravelCenters of America LLC (TA) continued its aggressive acquisition strategy by agreeing to acquire Quaker Steak & Lube’s restaurant and related assets for $25 million.
Founded in 1974, Quaker Steak & Lube has 50 locations in 16 states. The company submitted a bankruptcy filing that includes the asset purchase and $2-million debtor in possession financing agreements with TA. Pursuant to the purchase agreement, TA has placed a substantial deposit toward the purchase price and agreed to offer employment following the closing to substantially all of Quaker Steak & Lube's current employees.
The agreement is subject to bankruptcy court approval, which is expected in early 2016.
"Quaker Steak & Lube's unique brand and award-winning menu is a great fit for TA's primary customers — professional truck drivers and highway motorists," said TA's CEO Tom O'Brien. "We're confident that our existing foodservice operations will provide TA the tools it needs to make Quaker Steak & Lube a nationally-recognized restaurant brand. By converting some of our existing full-service restaurants to The Lube, we will enhance the variety of food and hospitality options that our travel centers already provide to professional drivers, and at the same time expand the awareness of Quaker Steak & Lube."
Sharon, Pa.-based Quaker Steak & Lube is well known for its unique décor, including gas station memorabilia, classic cars, motorcycles, race cars and Corvettes suspended from the restaurants’ ceilings.
According to Quaker Steak & Lube CEO Greg Lippert, the TA transaction ensures a bright future for the company, including plans to add more locations in the future.
"TravelCenters of America brings in-depth experience and resources to help Quaker Steak & Lube build upon our system's positive performance and help us fully realize our expansion goals," Lippert said. "TA has stated its desire to use the existing company and franchisee Quaker Steak & Lube locations that it acquires as a core around which to expand Quaker Steak & Lube into a nationally recognized brand."
TA recently completed the acquisition of 123 convenience stores in six separate transactions for approximately $230 million.
Westlake-based TravelCenters of America already has 500 quick-service restaurants, principally located in 253 travel centers, which operate under the TA and Petro Stopping Center brands. It also operates 184 convenience stores primarily under the Minit Mart brand name.