Pilot and Flying J merger a go!

[jelliott]

For immediate release Contact:
June 30, 2010 Cynthia Moxley
Moxley Carmichael
865-544-0088



PILOT TRAVEL CENTERS AND FLYING J FINALIZE MERGER
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Merger combines more than 550 branded travel centers in North America

Pilot Travel Centers LLC and Flying J Inc. announced today the completion of the merger of the two companies, creating an expanded network of more than 550 interstate travel centers and travel plazas focused on superior customer service and enhanced offerings for professional drivers and traveling motorists.

The new company, to be called Pilot Flying J, now operates in 43 states and six Canadian provinces and employs more than 20,000 people. It is one of the top 10 privately held companies in the United States.

“We are now one great company, two great brands,” said
Pilot Flying J President and CEO Jimmy Haslam. “Our new organization is a combination of two of the best-known brands in the travel center industry, both with strong family histories and shared values.

“So, whether you are a professional driver, a trucking company, a business traveler, a family on vacation, or a nearby resident, our new company is ready to serve your interstate fueling, dining or other consumer needs. We look forward to a bright future as our customers' preferred stop for highway hospitality.”

According to Crystal Call Maggelet, chairman of the board of Flying J:
“The merger is a historic moment in our industry. It will be exciting to see our more than 550 locations come together, providing a complete North American network of travel centers. Our customers will benefit through new and expanded services. Outstanding customer service will continue to be a top priority at the new company.”

The Federal Trade Commission terminated the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, on June 30, and the combination becomes effective July 1. In July 2009, Pilot and Flying J announced a preliminary agreement to merge the respective travel center operations.

Customers still will see the Pilot and Flying J brands on signage at the interstate facilities. Pilot has begun to accept the TCH card, and Flying J has begun to accept Comdata cards. This change gives the trucking community many more options of where to fuel that are not dependent on the card they carry.

Other plans call for enhanced restaurant offerings with national brands in all locations. Brand additions to Flying J locations in the new network include Denny’s, Subway and Pizza Hut. In addition, there will be upgrades to drivers’ lounges, new gasoline and diesel pumps, enhanced showers and remodeled restrooms at many locations.

Pilot Flying J is selling 26 locations to Love’s Travel Stops & Country Stores as required by the Federal Trade Commission as a condition for the merger. For a list of the affected locations and for additional information about the merger visit http://www.pilotflyingj.com.

For more information about Pilot Travel Centers, visit Pilot Travel Centers LLC, and for more information about Flying J, visit Flying J.


About Pilot Flying J
Pilot Flying J is headquartered in Knoxville, Tennessee, and has more than 550 locations in North America. The company employs more than 20,000 people and is the largest retail operator of travel centers in North America.

 

[OntarioVanMan]

Here is the answer to the question from the web site...


Both Pilot Travel Centers and Flying J are grateful to our longtime loyal customers. As a new organization, we’re ready to continue to serve you through an expanded network of 550-plus travel centers and travel plazas across North America.

As we prepare to fuse our two companies seamlessly for our customers, loyalty programs for Pilot Travel Centers and Flying J will remain in effect as separate programs at this time.

In the future we plan to merge these programs to offer our customers more choices and flexibility. Please check back on the Loyalty section of this website for future plans as they develop

 

[Turtle]

In addition, there will be upgrades to drivers’ lounges, new gasoline and diesel pumps, enhanced showers and remodeled restrooms at many locations.

I stopped by the Knoxville Flying J last night to fuel and was gonna grab a quick shower. The place was all tore up in one of the finest examples of a Charlie Foxtrot that I've ever seen. Restaurant being remodeled, restrooms, showers, too. They were installing new fuel pumps everywhere, and half the card readers weren't working. Fuel islands were 4 trucks deep each, and there were 17 people in line at the one open register. It was awesome.

The shower programs are to remain as-is for now, but will be merged in the future.

Transflo scanning, in addition to the Trip-Pak scanning that's already there, will be in place in all Flying J's within 180 days.

Pilots and Flying J's will continue to be branded as individual brands, and will not be merged into a single brand.

Pilot will not reduce the size of the Flying J parking lots, nor will they be closing the J's trucker lounges. Most of the lounges are to be upgraded with new furniture and larger flat-screen televisions, which is what they were doing in Knoxville.

Over the next 60 days or so, Flying J's Internet provider will be transferred over to Pilot's Internet provider.

One big one, the Flying J E-Store will be closing on Thursday July 1, 2010 (that's tomorrow), so if you want to order anything, gotta do it today. Loyalty points can still be used in the restaurants (and delis at locations without a restaurant, like in Kansas City).

Pilot Flying J is selling 26 locations to Love’s Travel Stops & Country Stores as required by the Federal Trade Commission as a condition for the merger.

Three locations are closing outright, Well, NV, Julesburg, CO, and Payson, UT.

Some of the notable (IMHO) locations that will become Love's include:

Pilot West Memphis, AR​ ​
Flying J Corning, CA
Pilot Fort Pierce, FL (don't know if it's one or both)
Flying J Des Moines, IA
Flying J Gary, IN Grant St.
​Pilot Whiteland, IN
Pilot Haubstadt/Evansville, IN (don't know if it's one or both)
Pilot Bordentown, NJ (that's weird, Carny's Point locations remain)
Flying J Troutdale, OR
Pilot Carlisle, PA
Pilot Sioux Falls, SD
Pilot Nashville, TN ​130 West Trinity Lane
Flying J Tacoma, WA
Flying J Oak Creek, WI

 

[Jack_Berry]

no loss on that j in tacoma. it is a dive. almost as bad as the gary, grant st location.


Other plans call for enhanced restaurant offerings with national brands in all locations. Brand additions to Flying J locations in the new network include Denny’s, Subway and Pizza Hut


dennys is no improvement in our opinion. only so many tuna subs can be eaten and finally why replace one bad piza place with another? why not get uno's or gnos east to do pizza from scratch?

 

[Bruno]

The one in Oak Creek, Wi is one of the newer Flying J. Wow that one is not that old.

 

[OntarioVanMan]

no loss on that j in tacoma. it is a dive. almost as bad as the gary, grant st location.


Other plans call for enhanced restaurant offerings with national brands in all locations. Brand additions to Flying J locations in the new network include Denny’s, Subway and Pizza Hut


dennys is no improvement in our opinion. only so many tuna subs can be eaten and finally why replace one bad piza place with another? why not get uno's or gnos east to do pizza from scratch?

I don't like Uno...yuck....

Bruno...you have to sharpen up your reading skills....no where does it say NEW to Oak Creek..it will be sold to Loves...

Too bad tho..I liked Oak Creek...nice showers, usually clean

They shoulda kept Gary and got rid of that other hole Lake Station...

 

[moose]

the one in V.A ,I-77/81 x 80 is gonna be Pilot within a week or so . same Experience as Turtle .
Oh yah ,& i found this cool Expediters there :

 

[Bruno]

I don't like Uno...yuck....

Bruno...you have to sharpen up your reading skills....no where does it say NEW to Oak Creek..it will be sold to Loves...

Too bad tho..I liked Oak Creek...nice showers, usually clean

They shoulda kept Gary and got rid of that other hole Lake Station...

OVM, It say's the Flying J in Oak Creek. That Flying J is the only one in Oak Creek, Wi so you better sharpen up on your reading and truck stop skills bud. That is one of the newest Flying J truck stops. It's less than 3 years old.

 

[highway star]

They're not wasting any time on the Love's deal, Grant St. is already being converted.

 

[buddy]

The J along I-75 in saginaw michigan is all tore up inside as well.
The employees I spoke with are very nervous as they are concerned that this place will turn into a dirty/dumpy place like the majority of the pilots out there.

My concerns as well!!!!

 

[xiggi]

Joplin MO and Tulsa OK are also under construction.

 

[Turtle]

From With Flying Colors | CSP Daily News / Magazine | CSP Information Group, Inc.

According to the FTC's complaint [necessitating the sale of 26 locations to Love's], the deal between Pilot and Flying J would have reduced competition for certain long-haul trucking fleets for which Pilot and Flying J were the first and second best choices for their diesel needs. "The proposed settlement will resolve the competitive concerns resulting from Pilot's acquisition of Flying J's travel center business, which would have likely resulted in higher diesel fuel prices for long-haul trucking fleets," said Richard A. Feinstein, director of the FTC's Bureau of Competition.

The divestiture to Love's, along with Love's expansion plans, will allow it to compete better for long-haul fleets that otherwise would be harmed by Pilot's acquisition of Flying J.

The settlement order contains several provisions designed to ensure that Love's can become a successful competitor to the newly formed Pilot Flying J: The order requires Pilot to provide Love's, at its request, access to and use of a fuel purchase card system that Pilot is acquiring (and maintain appropriate firewalls during this access and use); continue operating Wendy's restaurants affiliated with certain divested travel centers for one year; not interfere with the transfer of any employees who choose to work with Love's after it acquires the travel centers; and provide Love's with business information related to the 26 travel centers being sold and maintain the travel centers as viable businesses until they can be transferred to Love's.

In addition, the order allows the FTC to appoint an interim monitor to oversee the sale of the assets, if necessary, and contains reporting and other terms to ensure Pilot's compliance.

Click here to view the FTC documents.

Meanwhile, the deal has triggered some other changes in the travel center industry. Denny's Corp. has announced that it will begin converting the restaurant operations of up to 140 Flying J Travel Centers to Denny's units starting in July 2010.

As previously announced in March 2010, Denny's has been selected as the full-service restaurant operator of choice for Pilot. On June 30, 2010, the FTC approved the merger of Pilot and Flying J, enabling the agreement with Denny's to proceed.

Denny's expects to have 80 sites converted by yearend 2010, including 10 sites that will operate as company restaurants. The balance of the conversion opportunities are expected to open as Denny's in 2011.

On an annualized basis, the full potential of conversions is expected to add an estimated 7% to 8% to Denny's system-wide sales. Denny's franchisees will convert and operate most of the Flying J locations, with the company planning to convert and operate approximately 15 of the restaurants. The capital outlay is expected to be approximately $565,000 per conversion. Existing employees will generally remain in place.

Denny's has also arranged a program through Pinnacle Commercial Capital to provide access to $40 million in credit facilities for Denny's franchisees. Spartanburg, S.C.-based Denny's is one of America's largest full-service family restaurant chains, with 1,322 franchised and licensed units and 237 company-owned units, with operations in the United States and worldwide.

Also, Pilot said that effective immediately, its nationwide network of travel centers will accept TCH cards. TCH cards provide one-card convenience for professional drivers to manage fuel, maintenance and cash advance needs. Long-haul transportation fleets across the U.S. use TCH cards for fuel and fleet-related purchases. TCH cards can be used at the fuel pump or in store at all Pilot Flying J locations.

And Pilot has announced that it has sold Flying J's Scan & Go assets to Pegasus TransTech. Beginning immediately, TRANSFLO Express truckstop scanning from Pegasus TransTech will be deployed at all 180 Scan & Go Express locations in the United States and Canada. There is also an agreement to install TRANSFLO Express at the remaining Flying J sites, excluding Quebec, within the next 60 days.

Tampa, Fla.-based TRANSFLO Express operates the largest truckstop scanning network, including all Pilot travel centers, hundreds of other truckstops nationwide and now the Flying J truckstops.

And the Pilot Flying J deal is causing ripples beyond the industry, into politics. Tennessee Democratic gubernatorial candidate Mike McWherter is criticizing a $1.8 billion merger between Flying J and Pilot, which is owned by Republican candidate Bill Haslam and his family.

"This is a major addition to a growing list of concerns over Bill Haslam's oil interests," McWherter said in a press statement.

The McWherter campaign noted the FTC had originally filed an anti-trust complaint in which regulators cited "competitive concerns" about the merger because the deal at that point "would have likely resulted in higher diesel fuel prices for long-haul trucking fleets."

Despite FTC approval of the deal and the sale of the locations to Love's, the McWherter campaign said the merger will create an "oil goliath" that will cause competitive problems for "mom-and-pop" truckstop operators who now will be "forced to compete with the purchasing power of a big oil conglomerate."

Dave Smith, a spokesperson for the Haslam campaign, told CSP Daily News: "We're focused on the Republican primary, but Mr. McWherter is making a goofy and tired argument. Growing companies should take note of his tone, because any governor would be happy to have a home-grown and growing top-10 national company headquartered in their state."

The new Pilot Flying J is headquartered in Knoxville, Tenn., and has more than 550 interstate travel center and travel plaza locations. The company employs more than 20,000 people and is the largest retail operator of travel centers in North America.


-----------------

And in a completely unrelated but wholly fascinating story...

Kenly, N.C., TA Converts to Petro
Facility was remodeled, expanded in 2010

TravelCenters of America LLC has announced that its Kenly, N.C., franchise location has converted to the Petro Stopping Centers brand. The site had been previously been branded "TA."

This switch was initiated so that Petro customers have a vital fueling and stopping point along Interstate 95 between Virginia and South Carolina.

The Kenly location was recently remodeled and expanded in 2010. The $10 million expansion and remodel included a 65-foot Cape Hatteras lighthouse replica, a food court featuring Wendy's and Subway, new Super Truck Showroom filled with trucking accessories, a movie theater, gift store, convenience store and full-service restaurant.

The new Petro Stopping Centers facility will offer the Iron Skillet restaurant, a four-bay Petro: Lube Service Center and Petro-branded diesel fuel. Kenly 95 Petro also offers a CAT Scale and Truckomat Truck Wash located across the street.

 

[greg334]

It seems amazing that the FTC can force a divesting of 26 locations of two medium size companies while they approve mega mergers and retro-mergers of super large companies that we end up bailing out.

 

[Doggie Daddy]

Flying J in Baytown,TX,also under construction/renovation.

 

[bobwg]

The J in Phoenix is under construction stopped there today to fuel, showers and restrooms being redone looked like the lounge was already redone and nothing done with the food area yet

 

[moose]

You can now find the best price for the fuel along your trip ,in one convenience place :

Pilot Travel Centers LLC - Complete Pricing List

where you will also find out that they matched the price to eliminate competitions at same exit or town .
so now you can get the same low energy fuel from the J at the pilot price ...

now if we can get Love's to buy TA ,we will only have just about 2 options to choose from ,just like in politics ... perfect .