Dive Brief:
- Equilon Enterprises LLC, doing business as Shell Oil Products US, has increased its equity investment in Southeastern c-store retailer Tri Star Energy from 33% to 100%, according to an announcement from Shell on Tuesday.
- As a result of the increased investment, Shell will acquire from Tri Star 320 fuel and convenience retail sites in Tennessee and surrounding states, as well as supply agreements with 552 dealer-owned locations.
- This acquisition significantly strengthens Shell’s company-owned convenience retail presence in the U.S.
Dive Insight:
Once the deal closes, Tri Star will be operated by Texas Petroleum Group, a wholly owned subsidiary of Shell Mobility & Convenience US, the oil giant’s c-store division in the states, according to the announcement. Shell Mobility’s portfolio will include nearly 550 company-owned convenience retail sites and supply agreements with approximately 650 dealer-owned sites across the southern US.
The deal underscores Shell’s strategy to reallocate capital from lower-return areas to businesses and markets where it’s proven it can deliver strong performance and has clear competitive advantages, per the announcement. The company previously outlined that 80% of its growth cash capital expenditure in its mobility and convenience business will be spent in 10 key markets, including the U.S., where it generates the majority of its cash flow.
Shell is acquiring the remaining interests in Tri Star from Tennessee-based entities The Parman Corporation and Kimbro Oil Company and their subsidiaries, according to the announcement. Kimbro said in a separate announcement that it will acquire Tri Star Energy’s commercial fuel business, which will continue to operate independently of the sale to Shell.
The transaction is expected to close by the end of 2026, according to the announcement. Shell did not disclose a purchase price.
“Tri Star has built a strong business with high-quality assets, a dedicated team and a loyal customer base,” Machteld de Haan, Shell’s president of downstream, renewables and energy solutions, said in the announcement. “The transaction is fully aligned with our growth strategy to focus capital on businesses in which we have distinctive advantages and can create long-term shareholder value.”
Tennessee-based Tri Star, which was founded in 2000, exits the industry as economic headwinds continue to make the operating environment challenging for small and mid-size convenience retailers. Its c-store banners include Twice Daily, Sudden Service and Little General. The company also runs the White Bison coffee shop chain, which operates inside Twice Daily stores.
A spokesperson from Tri Star did not respond by press time to comment on the sale.
Editor’s note: This story has been updated with information from Kimbro Oil Company.
