Shell Oil Products US has bought the remaining stake in Tri Star Energy, making it the full owner of an additional 320 fuel and convenience stores.

Based in Nashville, Tri Star operates 320 fuel and convenience retail sites in Tennessee and surrounding states, as well as holds supply agreements with 552 more dealer-owned locations. 

As per the agreement, Shell will increase its equity in the company from 33 per cent to 100 per cent by acquiring the remaining interest from The Parman Corporation, Kimbro Oil Company, and their subsidiaries. 

Shell already has the largest branded fuel network in the US, with approximately 12,000 primarily wholesaler- and dealer-owned fuel and convenience retail sites across 49 states. The company said the deal will further strengthen its company-owned presence in the country.

Once the acquisition is complete, Tri Star will be operated by Texas Petroleum Group, a wholly owned subsidiary of Shell.

“Tri Star has built a strong business with high-quality assets, a dedicated team and a loyal customer base,” said Machteld de Haan, president of downstream, renewables and energy solutions at Shell. 

“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.”

According to the company, the investment is in line with its strategy to reallocate capital from lower-return areas to businesses and markets with strong performance and competitive advantages.

The transaction is expected to close by the end of this year. Financial details of the deal were not disclosed.

• Further reading: Shell to sell Jiffy Lube business, including 2000 franchised stores.