Speedway LLC

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Speedway LLC
Subsidiary
IndustryRetail (convenience stores)
Founded2011
Headquarters500 Speedway Drive
Enon, Ohio, United States
Number of locations
3,923 (December 31st, 2018)[1]
Key people
Tony Kenney, President
Revenue$23,552 million (2018)[1]
$1,028 million (2018)[1]
Number of employees
40,230 (2018)[1]
ParentMarathon Petroleum
Websitewww.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 front counter and cigarette display in Hobart, Indiana

Speedway LLC is an Enon, Ohio based convenience store and gas station chain with locations primarily located in the Midwest and the East Coast of the United States, primarily within the states of Connecticut, Florida, Georgia, Illinois, Indiana, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Virginia, West Virginia, and Wisconsin. The company is a wholly owned subsidiary of the Marathon Petroleum Corporation and is the largest convenience store chain in central Ohio.[2]

History[edit]

Speedway started as Speedway 79, the name of 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 in 1962 converted its outlets to the Marathon brand.[3]

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 the company 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. Stations acquired in the Cheker deal included former Enco stations that Cheker acquired after they were sold off by Exxon in 1977.[4]

In 1997, Marathon and Ashland Petroleum formed Marathon Ashland Petroleum LLC (MAP), a joint venture which combined 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. At this time, Marathon acquired the rights to the Solo, Save Mart, Save More, and Rich brands from Ashland, along with others. Many of these brands would be converted to the Speedway brand over time. 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 the Upper Midwest 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. Speedway and SuperAmerica became unrelated chains until 7 years later, when Marathon bought Andeavor, who owns SuperAmerica's parent company Western Refining. Following the separation of Marathon's upstream and downstream operations in 2011, Speedway remained a part of Marathon's downstream operations.

In 2001, 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. Following its merger with Hess Corporation's retail chain in 2014, six WilcoHess locations in Virginia were rebranded as Pilot locations and jointly operated between Pilot Flying J and Speedway.[5] On June 23, 2016, Pilot Flying J and Speedway announced a new joint venture between the two companies that will see 41 Speedway locations (all former Wilco Hess locations) and 79 Pilot Flying J locations primarily in the Southeastern United States form PFJ Southeast LLC. The locations will be operated by Pilot Flying J and the Speedway locations will be rebranded as either Pilot or Flying J.[6]

As of December 2, 2016, 12% of Speedway stores carry E85 Ethanol.[7] Speedway currently has 326 stores with E85 available, and one store which carries CNG. Almost all of its stores in the Pittsburgh Metro as well as its stores in the state of Tennessee offer E85, greatly expanding the availability of the fuel in these respective markets.

2012–14 expansion[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.[8] Speedway also acquired all trademarks, trade dress and intellectual property from GasAmerica[9] and included several parcels of undeveloped real estate for future development. The transaction was finalized on May 29, 2012, for an unspecified price.[10]

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.[11] 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.

A white square canopy, seen from an angle with red gas pumps underneath, at night. At the one closest to the viewer, a red pickup truck is parked. On the canopy are illuminated red letters spelling out "Speedway"; the same word is also visible on the pumps and a sign behind the canopy where gas prices are given in green and red digital type. It is raining and the wet pavement reflects the lighted objects above it.
Former Hess station, now a Speedway, in Newburgh, NY

In May 2014, Speedway announced they would purchase Hess Corporation's retail business for $2.6 billion. Hess has 1,342 locations along the Eastern United States.[12]

Post Hess Expansion[edit]

On April 30, 2018, Marathon agreed to buy Andeavor, an independent refinery and oil company based in the Western United States, for $23 billion. On October 1 2018, the merger was completed. The merger brought all SuperAmerica locations once again under the ownership of Speedway.[13][14]

On April 16, 2018, it was announced that all 78 Express Mart locations were being re-branded as Speedway locations, which follows Marathon's acquisition of Express Mart, a chain based in Syracuse, NY that co-branded with competitors such as Sunoco and Mobil.[15] Speedway and MPC closed on the acquisition of Express Mart in November 2018 after being required by the FTC to divest of 5 stores.[16]

Public Relations[edit]

A corporate partner of Children’s Miracle Network Hospitals since 1991, Speedway has raised more than $100 million over the past 26 years for the charity through a variety of fundraising activities. Speedway LLC raised $10.3 million for Children’s Miracle Network Hospitals in 2017.[17]

Speedway was ranked the 4th worst company to work for in the United States in 2018, with work-life balance and senior management as major detractors to the work environment.[18] These issues are highlighted in the memoir, "Corporate Lunacy; Behind the Scenes of America's Worst Gas Station" (written by Rob Clooney).[19]

In 2019, Speedway announced endorsing LPGA golfer Ally McDonald through 2020.[20]

References[edit]

  1. ^ a b c d http://ir.marathonpetroleum.com/Cache/397138125.PDF?O=PDF&T=&Y=&D=&FID=397138125&iid=4136924
  2. ^ Dan Gearino. "Family-owned company gobbles up BP stores". The Columbus Dispatch. Archived from the original on September 17, 2010. Retrieved March 24, 2016.
  3. ^ http://www.gassigns.org/speedway79.htm
  4. ^ "Marathon Marketing History" (PDF). Marathonpetroleum.com. Retrieved March 31, 2016.
  5. ^ Pilot Flying J Expands Diesel Network in Virginia Pilot Flying J (10/28/2014)
  6. ^ "Latest Pilot, Speedway JV Builds on History".
  7. ^ "Speedway E85 Store Percentage - General E85 Discussions - Planet E85". E85vehicles.com. March 20, 2016. Retrieved March 24, 2016.
  8. ^ Hirsch, Stuart (February 13, 2012). "Speedway will acquire 88 GasAmerica stores " Local News". The Herald Bulletin. Retrieved April 20, 2013.
  9. ^ InsideINdianaBusiness.com Report. "Speedway to Acquire GasAmerica – Newsroom – Inside INdiana Business with Gerry Dick". Insideindianabusiness.com. Archived from the original on March 23, 2014. Retrieved April 20, 2013.
  10. ^ "Speedway completes purchase of 87 GasAmerica stations". Thecourier.com. Archived from the original on June 3, 2012. Retrieved April 20, 2013.
  11. ^ "Speedway buys Road Ranger convenience stores – Dayton Business Journal". Bizjournals.com. June 5, 2012. Retrieved April 20, 2013.
  12. ^ "Speedway to Acquire Hess Retail". Marathon Petroleum Corporation. Retrieved May 24, 2014.
  13. ^ Kennedy, Patrick. "SuperAmerica is becoming Speedway, end of a name that originated at a St. Paul gas station". Star Tribune. Retrieved October 14, 2018.
  14. ^ Rehkamp, Robert. "SuperAmerica rebranding as Speedway after giant oil merger". Minneapolis/St.Paul Business Journal. Retrieved October 14, 2018.
  15. ^ "Speedway to acquire 78 Express Mart locations in New York". Speedway, LLC. Retrieved December 18, 2018.
  16. ^ https://csnews.com/speedway-takes-ownership-express-mart-chain
  17. ^ "Speedway raises $10.3 million for kids treated at local Children's Miracle Network Hospitals". Marathon Petroleum Corporation. February 22, 2018. Retrieved August 24, 2018.
  18. ^ "What are the worst companies to work for?". USA Today. June 15, 2018. Retrieved August 24, 2018.
  19. ^ "Corporate Lunacy; Behind the Scenes of America's Worst Gas Station". Amazon. Retrieved March 23, 2019.
  20. ^ "Speedway sponsors LPGA golfer Ally McDonald". Marathon Petroleum Corporation. February 28, 2019. Retrieved March 23, 2019.

External links[edit]