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ROCKFORD, Ill. -- Road Ranger LLC, operator of 55 Midwest convenience stores, completed the previously announced acquisition of eight convenience stores in Illinois and Iowa. In February, six of the stores located in Cedar Rapids, Iowa, were purchased from Quik Trip, while two Grand Prix stores were bought in Illinois.
The eight stores generated revenues of approximately $53 million for the 12 months ending December 2006.
"The store sales and footprint are exactly what we are looking for when we look to acquire existing property," Road Ranger President Dan Arnold said in a written statement. "They generate the highest average revenues of any acquisition in Road Ranger's history. While both of these chains do things differently than Road Ranger, I think we can learn from what they do well and integrate them into our marketing plan. The transition with both chains went very smooth. They are a class act to follow. These chains have built a leading market position in their respected areas, and they compliment our existing store base."
Road Ranger's presence in Iowa has been minimal in the past, "partly because of Quik Trip's strength in the market. This acquisition provides us with an excellent platform for future growth in one of the Mid West's most fundamentally attractive urban areas," he added.
The two Grand Prix stores are located in Loves Park, Ill. and Rochelle, Ill., and cost $3.45 million, according to a report in the Rockford Register Star. One location has already been converted to the Road Ranger brand, while the other will continue under the Grand Prix banner for a short time before converting, the report stated.
The transaction is the first for the company in fiscal 2007. The company's goal is to operate 100 stores by the end of 2008. Currently, the company operates 55 locations in five states. In the past 60 days, the company opened two travel centers -- one in Champaign, Ill. and another in Fenton, Mo.