Dive Brief:
- Convenience and fuel retailer United Fuels Midwest has sold its 13 sites to three competitors for an undisclosed amount, according to an announcement from advisory firm Downstream Energy Group, which coordinated the transaction.
- The deal included United Fuels’ eight convenience stores and five travel centers across Minnesota and South Dakota as well as its wholesale commercial fuels distribution business and petroleum transport arm, according to the announcement. Buyers included Casey’s General Stores, Staples Oil and a third company that was not named.
- This marks United Fuels’ exit from the convenience retailing, wholesale and logistics industries.
Dive Insight:
It’s unclear why United Fuels sold its business, most of which consisted of franchised and licensed Speedway locations. However, industry-wide, smaller convenience retailers are struggling to stay afloat amid today’s difficult operating economy, leading many of them to sell some or all of their operations.
Smaller retailers have said the operating environment is so tough that they’re not currently trying to grow, but instead focused on keeping their businesses afloat.
“This was a complex, multi-party transaction involving retail, wholesale, and logistics components,” said Jeff Traub, partner at Downstream Energy Group, in the announcement. “United Fuels has built a strong organization over many years, and we were honored to represent them in achieving a successful outcome with several highly respected industry buyers.”
It’s also not clear how many of the 13 stores were sold to each buyer. Staples Oil only operates bulk fuel locations across its five-state footprint, while Casey’s operates close to 3,000 stores across the Midwest and has acquired numerous small operators in recent years.
