Flying J received final approval from the Federal Trade Commission yesterday to merge its travel plaza business with Pilot Travel Centers. The merger, effective today, will help the company emerge from Chapter 11 bankruptcy protection and create an entity of more than 550 interstate travel centers
Pilot will sell off 20 of its locations as part of the merger deal. Flying J will sell six.
Pilot will sell off 20 of its locations as part of the merger deal. Flying J will sell six.
and travel plazas in 43 states and six Canadian provinces.

As part of the merger terms, Pilot Flying J is selling 26 locations to Love's Travel Stops & Country Stores, 20 of which are Pilot Travel Centers. This was required by the FTC to prevent any anti-competitive effects, a source familiar with the industry said.

Many Flying J employees were handed their 60-day notices of termination at the company's Ogden, Utah, headquarters, prior to the official merger announcement, a source told Truckinginfo.com.

A bankruptcy court approved Flying J's request to merge with Pilot Travel Centers last year. Under the agreement, Flying J had to dismiss antitrust litigation against Pilot, while Pilot agreed to accept Flying J's TCH cards at locations owned by Pilot or leased and managed by Pilot, with the exception of its convenience stores.

"The merger is a historic moment in our industry," said Crystal Call Maggelet, chairman of Flying J. "It will be exciting to see our more than 550 locations come together, providing a complete North American network of travel centers. Our customers will benefit through new and expanded services."

Customers still will see the Pilot and Flying J brands on signage at the facilities. Pilot has begun to accept the TCH card, and Flying J has begun to accept Comdata cards.

Restaurant brands Denny's, Subway and Pizza Hut will be added to Flying J locations. In addition, there will be upgrades to drivers' lounges, new gasoline and diesel pumps, enhanced showers and remodeled restrooms at many locations.

Flying J filed for Chapter 11 bankruptcy protection in December 2008.

Late last year, Flying J sold off its insurance subsidiary to the Buckner Co., a Salt Lake City, Utah-based insurance brokerage firm, in an effort to raise some cash to come out of bankruptcy. Last year, the company also sold its Longhorn Partners Pipeline to Magellan Midstream Partners to drum up some funds, according to reports by the Salt Lake Tribune.

Earlier this month, Flying J sold off its Bakersfield, Calif., refinery to Alon USA Energy for $40 million.

For a complete list of divested stores, click here.

For more information about the new company, go to www.pilotflyingj.com.


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