CVC Buying Into Pilot Travel Centers

CVC Capital Partners has agreed to acquire a 47.5% stake in Pilot Travel Centers, which would form an equal governance partnership with Pilot Corp. The CVC stake is being purchased from Marathon Oil Corp. for an undisclosed amount. PTC operates the largest travel center network in the United States with 305 locations in 40 states.

 

PRESS RELEASE

CVC Capital Partners (“CVC”), a leading global private equity firm, and Pilot Corporation, a parent company of Pilot Travel Centers (“PTC”), the largest operator of travel centers in the United States, announced today that CVC Capital Partners will be acquiring a 47.5% interest in Pilot Travel Centers forming an equal governance partnership with Pilot Corporation, wholly owned by the Haslam family.

 

CVC’s investment, and the new ownership structure whereby Pilot Corporation will own 52.5% of PTC, facilitates the sale by Marathon Oil Corporation of its interest in PTC, which it has held since PTC was formed in 2001. The current management, led by CEO James A. Haslam III, will continue to manage the business on a day-to-day basis. The transaction is expected to close in October 2008.

 

PTC operates the largest travel center network in the United States with 305 locations in 40 states and one in Ontario, Canada. The company also licenses 18 locations in four states. PTC plays an important role in U.S. transportation fuels infrastructure, supplying approximately 10% of the on road truck diesel consumed in the U.S., making PTC the largest fuel supplier to the trucking industry.

 

Founded in 1981, CVC Capital Partners is a leading international private equity firm with $45 billion under management spanning 19 offices across Europe, Asia and the United States of America.

 

“Pilot has become the industry leader by growing organically and through acquisition,” noted Christopher J. Stadler, Managing Partner of CVC’s U.S. business. “It has world-class management systems and fuel supply infrastructure, which has led to strong operating performance in all market conditions. We look forward to a long and rewarding partnership with PTC’s management and the Haslam family.”

 

“We believe our partnership with CVC will enable Pilot Travel Centers to remain a vibrant, growing entity and to capitalize on opportunities our industry will present over the next few years,” said Haslam. “We are very excited to work with Chris Stadler and his partners at CVC.”

 

About CVC Capital Partners

 

CVC Capital Partners (“CVC”) is a leading global private equity and investment advisory firm founded in 1981, with a network of 19 Offices and 196 employees throughout Europe, Asia and the United States. CVC is currently investing from CVC Fund IV, CVC Asia II, CVC Tandem Fund and CVC Asia III with an aggregate of $19 billion in equity capital. The CVC team’s local knowledge and extensive contacts underpin a 27-year proven track record of investment success. CVC has the ability to bring an enormous amount of cross-border resource together quickly to focus on winning transactions. Today, CVC Funds own 52 companies worldwide employing approximately 387,000 people in numerous countries. Together these companies have combined annual sales of $78.7 billion.

 

About Pilot Corporation

 

Pilot Corporation (“Pilot”) is the parent company of Pilot Travel Centers, the nation’s largest retail operator of travel centers. Pilot’s travel centers cater to the professional driver and traveling motorist offering one-stop shopping for fuel, food, and travel merchandise. Over 300 of the stores feature nationally recognized fast food restaurants such as Subway, Wendy’s, Arby’s, Taco Bell, Denny’s, and McDonald’s. In addition to its travel centers, Pilot Corporation also owns and operates 37 convenience stores in Knoxville, Tennessee where the company is headquartered. Pilot was founded in 1958 by James A. Haslam II, its Chairman, and is wholly owned by the Haslam family. Pilot and Pilot Travel Centers combined employ over 13,000 nation-wide.