Published April 25, 2016 | The Business Journal
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WESTLAKE, Ohio – TravelCenters of America LLC says it has completed its acquisition of the Quaker Steak & Lube restaurant chain for $25 million.
“We expect to grow Quaker Steak & Lube into a nationally recognized brand principally by franchising and licensing, but we also expect to add the brand in selected existing facilities and to be opportunistic regarding the possibility of acquiring additional locations,” TravelCenters CEO Tom O’Brien said in a statement.
Quaker Steak & Lube, founded in Sharon, Pa., in 1974, filed for Chapter 11 reorganization Nov. 15.
U.S. Bankruptcy Judge Alan M. Kosich approved the sale during a hearing March 22 in Akron and issued the final order March 23.
In July 2014, Quaker Steak hired Mastodon Ventures Inc. to conduct a financial analysis of its operations and renegotiate its debt. Efforts to sell the company followed, and in October, an asset purchase agreement was reached with TA and was included as part of Quaker Steak’s bankruptcy petition.
The asset purchase includes 10 locations that will be operated as Quaker Steak & Lube restaurants by the TA Restaurant Group, and 40 locations operates by franchisees or licenses.
“We are pleased to welcome Quaker Steak & Lube brand to our operation,” said John Ponczoch, senior vice president of the TA Restaurant Group, in a statement. “We welcome all of our new employees, franchisees, licensees and customers. We intend to continue all the programs that made Quaker Steak & Lube popular and to improve on its success.”
TravelCenters of America operates fueling, restaurants, truck-repair facilities, convenience stores and other services in 43 states. TA Restaurant Group is composed of more than 780 quick-service and full-service restaurants and other food outlets, including 10 proprietary restaurant brands.
Quaker Steak & Lube was established in 1974 in Sharon, Pa., and has expanded to 50 locations in 15 states across the United States. The restaurant chain specializes in proving a décor that features gas station, classic car, and motorbike memorabilia.