In a deal valued at $25 million, Travel Centers of America (TA) will acquire Quaker Steak & Lube, a casual dining concept with more than 50 locations in 16 states.
In addition, on Nov. 17 Quaker Steak & Lube submitted a bankruptcy filing which includes the asset purchase and $2 million debtor in possession financing agreements with TA, according to a release announcing the deal. Pursuant to the purchase agreement, TA placed a 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.
TA operates more than 500 full- and quick-serve restaurants, principally located in 253 full-service travel centers and 184 convenience stores in 43 states. In announcing the deal, TA offered a glimpse into its plans for Quaker Steak & Lube.
"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 provided to professional drivers, at the same time expand the awareness of Quaker Steak & Lube," said Tom O'Brien, chief executive officer for TA. "Also, we expect to expand The Lube's existing franchise program, as well as its company-operated restaurants separate from our travel centers."