Speedway LLC

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Speedway LLC
Type Subsidiary
Industry Retail (convenience stores)
Founded 1959
Headquarters Enon, Ohio, United States
Number of locations 1,480
Key people Tony Kenney, President
Revenue No
Employees Unknown
Parent Marathon Petroleum
Website www.speedway.com
Smaller Speedway store, converted from Total when Speedway purchased some of their former locations
Typical Speedway store in Bath Township, Michigan
Larger Speedway store, in Bath Township, Michigan

Speedway LLC is the operator of a chain of combination gas stations and convenience stores in the Midwestern United States operating under the Speedway brand name. Speedway LLC is a wholly owned subsidiary of the Marathon Petroleum Company and is the largest chain in central Ohio.[1]

History[edit]

Speedway[edit]

Speedway 79 was a gasoline chain based in Michigan for much of the first half of the 20th century. In 1959, Marathon, then known as the Ohio Oil Company purchased the chain and promptly converted its outlets to the Marathon brand.

As self-service gasoline became legalized in many states, Marathon decided to use "Speedway" (without the "79") at higher-volume self-service stations with convenience stores. The concept turned out to be one of the few bright spots for Marathon during this time, and quickly expanded this concept across Marathon's main territories across the Midwest and Southeastern United States. Part of this expansion was through the acquisition of various other smaller regional gasoline station chains, including GasAmerica,Starvin' Marvin, Gastown, Wake Up, Bonded, United, Cheker, Port, Ecol, and Value. These stations were converted to the Speedway branding.

SuperAmerica[edit]

SuperAmerica convenience stores began in the 1960s in St. Paul, Minnesota, by Northwestern Refining of St. Paul Park, Minnesota. It was centered on the Upper Midwest and Florida.

Ashland Petroleum was a refiner based in Ashland, Kentucky. It marketed full-service stations under its own "Ashland" brand. As self-service was legalized, it used the brands "Solo", "Save Mart", "Save More", and "Rich", along with others.

Ashland purchased Northwestern Refining as well as the SuperAmerica chain in the 1970s. It converted most of its outlets in its core territory to "SuperAmerica", while withdrawing from Florida. It maintained a few outlets under its other brand names to keep the trademarks valid.

Combined history[edit]

In 1997, Marathon and Ashland formed Marathon Ashland Petroleum LLC (MAP), a joint venture which combining the companies' refining, marketing and transportation businesses, with Marathon owning 62% of the operations while Ashland owned 38%. In the process, Ashland's SuperAmerica and Marathon's Speedway convenience store chains were merged to form Speedway SuperAmerica LLC, a wholly owned subsidiary of MAP.

When the merger was completed in 1998, the Speedway and SuperAmerica brands began to market together. In 2005, Marathon purchased Ashland's share of Marathon Ashland Petroleum, which became Marathon Petroleum Company LLC, retaining the SuperAmerica and Rich brands that were originally owned by Ashland. At this time the locations outside the Upper Midwest were converted to "Speedway" and the "SuperAmerica" brand was restricted to that market.

Marathon sold SuperAmerica to Northern Tier Energy, a newly formed company backed by the private equity firms ACON Investments and TPG Capital, in February 2011. It is based in Woodbury, Minnesota. Today Speedway and SuperAmerica are unrelated chains.

Today[edit]

Today, Speedway LLC is headquartered in Enon, Ohio. The chain is still prominent in the Midwest, but pulled out in the Southeast in 2003 when Marathon sold off Speedway's operations to Sunoco. It stated Helvetica italic typeface, has a slash between S part of the name and convey motion and speed, like Microsoft. Around the same time, Speedway's truck stop chain was merged into the Pilot Travel Centers brand after Marathon and Pilot Corporation entered into a partnership to form Pilot Travel Centers. Pilot has since bought out Marathon's interest in Pilot Travel Centers, now Pilot Flying J. The Speedway brand is used in Illinois, Indiana, Kentucky, Michigan, Ohio, Pennsylvania, Tennessee, West Virginia, and Wisconsin.

Speedway's main rivals include BP, Circle K, Holiday Stationstores, Kwik Trip, and Casey's General Stores. Sheetz competes directly with Speedway stores in West Virginia and eastern Ohio.

2012–14 Expansion[edit]

Acquisition of GasAmerica[edit]

On February 13, 2012, it was announced that a deal had been reached with Indiana and Ohio convenience store chain GasAmerica to acquire all 88 of its locations.[2] As part of the purchase agreement, Speedway will also acquire all trademarks, trade dress and intellectual property from GasAmerica.[3] The deal also includes several parcels of undeveloped real estate for future development. The transaction was finalized on May 29, 2012, for an unspecified price.[4]

Purchase of Road Ranger stores[edit]

On June 5, 2012, it was reported that Speedway, LLC signed a deal with the convenience store chain Road Ranger. The deal gave Speedway nine Road Ranger stores in Kentucky, and one in Ohio, in exchange for cash and a truck stop in the Chicago metropolitan area.[5] Rockford, IL-based Road Ranger operates approximately 80 truck stop and gasoline convenience store locations in seven Midwestern states. Like Speedway before it, Road Ranger has a partnership with Pilot Flying J.

Entry into Pennsylvania and Tennessee[edit]

In 2012, Speedway announced a planned organic expansion into Pennsylvania and Tennessee. While expansion into Tennessee has focused on the Grand Division of Middle Tennessee,[6] it also confirmed an expansion into Western Pennsylvania, including Pittsburgh.[7] In both cases, Speedway has had a presence before: the Tennessee stations were included in the 2003 sale to Sunoco when Speedway exited the Southeastern United States, while Speedway had a brief presence in Pittsburgh in the early 2000s when the SuperAmerica stations in the area were converted over to Speedway; those stations have either since switched over to standard Marathon stations or have been sold off to competitors such as GetGo. The return of Speedway in Western Pennsylvania also coincided with Marathon taking over the retail contracts of several Exxon-branded stations in the central Appalachia and greatly expanding its presence in the Pittsburgh metropolitan area, where Marathon's former parent company U.S. Steel is based.[8] ExxonMobil would subsequently offset its Pittsburgh losses by taking over several Shell-branded stations in the area and convert them to the Exxon brand.

Acquisition of Hess Retail[edit]

In May 2014, Speedway announced they will purchase Hess Corporation's retail business for $2.6 billion. Hess has 1,342 locations along the Eastern United States.[9]

References[edit]

  1. ^ Family-owned company gobbles up BP stores
  2. ^ Hirsch, Stuart (February 13, 2012). "Speedway will acquire 88 GasAmerica stores " Local News". The Herald Bulletin. Retrieved April 20, 2013. 
  3. ^ InsideINdianaBusiness.com Report. "Speedway to Acquire GasAmerica – Newsroom – Inside INdiana Business with Gerry Dick". Insideindianabusiness.com. Retrieved April 20, 2013. 
  4. ^ "Speedway completes purchase of 87 GasAmerica stations". Thecourier.com. Retrieved April 20, 2013. 
  5. ^ "Speedway buys Road Ranger convenience stores – Dayton Business Journal". Bizjournals.com. June 5, 2012. Retrieved April 20, 2013. 
  6. ^ http://www.speedway.com/Pages/GasPriceSearch.aspx?lat=36.1958946&lng=-85.44858490000001&st=Algood%2c+TN
  7. ^ "Speedway considers 7 locations in W.Pa.". TribLIVE. Retrieved April 20, 2013. 
  8. ^ "Gas station operator converting 18 to Marathon brand". TribLIVE. Retrieved April 20, 2013. 
  9. ^ "Speedway to Acquire Hess Retail". Marathon Petroleum Corporation. Retrieved 24 May 2014. 

External links[edit]