Pilot Acquires Travel Center from Giant Industries
SCOTTSDALE, Ariz. -- Giant Industries Inc. yesterday reached a deal to sell its Gallup, N.M., travel center to Pilot Travel Centers LLC. Terms of the deal were not disclosed.
"Giant is pleased to announce this transaction as it will contribute to a number of our objectives," said Fred Holliger, Giant's chairman and CEO. "When we were approached about a possible sale of our travel center, both parties agreed that maintaining the sale of petroleum products from our Ciniza refinery would be an important component of any transaction. This objective will be accomplished by entering into a long-term product supply agreement with Pilot.
"In addition to the committed demand for petroleum products from our Ciniza refinery, it will contribute incremental earnings for our refining business unit and provide Pilot with a stable long-term fuel supply."
For Giant, which owns and operates three refineries and more than 300 convenience stores and travel centers, the deal will help the refiner/marketer pay down long-term debt.
"In addition to the direct economic benefits, this sale will also make a contribution to our continuing debt reduction strategy as proceeds from the sale will be used to reduce the outstanding balance of our revolving credit facility," Holliger said. "Upon closing of this sale, we will have generated approximately $9.2 million toward our goal of $20-$30 million from the sale of non-strategic assets by year-end and approximately $28.1 million since May 2002."
Pilot Travel Centers LLC is a joint venture 50 percent owned by Knoxville, Tenn.-based Pilot Corp. and 50 percent owned by Findlay, Ohio-based Marathon Ashland Petroleum LLC. Pilot Travel Centers LLC operates the country's largest travel center network with approximately 270 locations in 37 states. The sale is expected to close later this month.
"The addition of this asset to our nationwide network of travel centers will enhance the current amenities and service offering to our customers," said James Haslam III, president and CEO of Pilot Travel Centers. "We look forward to integrating the Giant travel center within Pilot Travel Centers."
"Giant is pleased to announce this transaction as it will contribute to a number of our objectives," said Fred Holliger, Giant's chairman and CEO. "When we were approached about a possible sale of our travel center, both parties agreed that maintaining the sale of petroleum products from our Ciniza refinery would be an important component of any transaction. This objective will be accomplished by entering into a long-term product supply agreement with Pilot.
"In addition to the committed demand for petroleum products from our Ciniza refinery, it will contribute incremental earnings for our refining business unit and provide Pilot with a stable long-term fuel supply."
For Giant, which owns and operates three refineries and more than 300 convenience stores and travel centers, the deal will help the refiner/marketer pay down long-term debt.
"In addition to the direct economic benefits, this sale will also make a contribution to our continuing debt reduction strategy as proceeds from the sale will be used to reduce the outstanding balance of our revolving credit facility," Holliger said. "Upon closing of this sale, we will have generated approximately $9.2 million toward our goal of $20-$30 million from the sale of non-strategic assets by year-end and approximately $28.1 million since May 2002."
Pilot Travel Centers LLC is a joint venture 50 percent owned by Knoxville, Tenn.-based Pilot Corp. and 50 percent owned by Findlay, Ohio-based Marathon Ashland Petroleum LLC. Pilot Travel Centers LLC operates the country's largest travel center network with approximately 270 locations in 37 states. The sale is expected to close later this month.
"The addition of this asset to our nationwide network of travel centers will enhance the current amenities and service offering to our customers," said James Haslam III, president and CEO of Pilot Travel Centers. "We look forward to integrating the Giant travel center within Pilot Travel Centers."