Quaker Steak & Lube® Receives Acquisition Bid From TravelCenters Of America
Leading Travel Center, C-Store and Foodservice Operator Plans to Purchase Company Assets and Ignite Growth
SHARON, Pa. - Nov. 16, 2015 // PRNewswire // - Quaker Steak & Lube® announced today that TravelCenters of America LLC (NYSE: TA) has agreed to acquire Quaker Steak & Lube's restaurant and related assets for approximately $25 million.
Founded in 1974, Quaker Steak & Lube® has more than 50 locations across 16 states. TA, a Fortune 500 publicly-traded company, operates over 500 full and quick serve restaurants, principally located in 253 full-service travel centers and 184 convenience stores in 43 states.
"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," said Greg Lippert, chief executive officer of Quaker Steak & Lube. "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."
Lippert added, "Our future at The Lube is bright. We foresee a positive impact from these transactions to our restaurants. In fact, under TA, we're confident that the number of our locations will continue to grow and our franchise owners, employees and suppliers will benefit from a stronger Quaker Steak & Lube."
"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 Chief Executive Officer 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, at the same time expand the awareness of Quaker Steak & Lube. Also, we expect to expand The Lube's existing franchise program, as well as its company-operated restaurants separate from our travel centers."
Quaker Steak & Lube submitted today a bankruptcy filing which, 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 has agreed to offer employment following the closing to substantially all of Quaker Steak & Lube's current employees. The agreements are subject to bankruptcy court approval, which is expected in early 2016, and other conditions including, but not limited to an auction process supervised by the bankruptcy court. The auction process is expected to be subject to certain rules regarding topping bids including, but not limited to, TA's right to receive a topping fee, expense reimbursements and repayment of the debtor in possession financing plus interest.
About Quaker Steak & Lube®
Founded in 1974 in Sharon, Pa., Quaker Steak & Lube® has expanded across the United States. The unique decor, including gas station memorabilia, classic cars, motorcycles, race cars and corvettes suspended from the ceilings combined with the crave-able food and high-octane events has afforded The Lube® a cult-like fan following. Today, Quaker Steak & Lube® has become one of the fastest-growing restaurant chains in the country, and has won hundreds of national and international awards for its wings and more than 25 different wing sauces.
About TravelCenters of America LLC:
TA's travel centers operate under the "TravelCenters of America", "TA", "Petro Stopping Centers" and "Petro" brand names and TA's convenience and offer diesel and gasoline fueling, restaurants, truck repair facilities, travel/convenience stores and other services. TA's nationwide business includes locations in 43 U.S. states and in Canada. TA convenience stores operate principally under the "Minit Mart" brand name.
SOURCE Quaker Steak & Lube