Tri Star's purchase of Scot Markets doubles retail network, strengthens Shell brand in mid-Tennessee
NASHVILLE, Tenn. -- Tri Star Energy LLC has nearly doubled its company-owned convenience stores and fuel centers with the purchase of 57 Scot Markets sites. As a result of the acquisition, Tri Star will operate 120 sites in Tennessee and Kentucky, including 103 in Middle Tennessee.
As reported in a CSP Daily News Flash yesterday, Tri Star Energy is converting most of the 57 Scot Markets sites to the Shell brand. Some sites will keep the Scot Markets name, while others will be rebranded as Daily's Convenience Stores.
Tri Star Energy [image-nocss] also distributes fuel to an additional 120 independent retailers in Tennessee.
Scot Markets is a great locally owned company with a name that's trusted by customers, said John B. Jewell, CEO of Nashville, Tenn.-based Tri Star Energy. We look forward to expanding the Shell and Daily's brands while continuing the hometown tradition of Scot Markets.
Jewell told CSP Daily News why the deal was made: We've known Jimmy Perkins and his family for a number of years. Scot Markets has been in business in Nashville for over 50 years, and they certainly have enjoyed a very good reputation. And they have focused on taking care of the customers and treating them in the right kind of way, as you would expect a good operation to do. They just happened to be a good fit for us, and so we're really excited about going forward with it.
Tri Star Energy plans to absorb Scot Markets' personnel into its workforce, which will grow the company's employee base from approximately 500 to nearly 1,000, with 900 of those employees located in Middle Tennessee. Locally owned and operated Scot Markets is also headquartered in Nashville. The acquisition of 10 Scot Markets sites in Kentucky and seven sites in East Tennessee represents Tri Star Energy's first operations outside of Middle Tennessee.
Tri Star Energy will continue to provide local customers with quality products, exceptional service and competitive prices under the Shell banner, Jewell said. Customers have a choice when they purchase gasoline and we intend to make Shell the brand of choice for motorists in the area.
Tri Star Energy is a joint venture of Kimbro Oil Co., The Parman Corp. and Motiva Enterprises LLC.
Scot Markets, operated by Consumers Gasoline Stations Inc., generates approximately $188 million in annual revenues. Owned by James W. Perkins Jr. and family, its beginning dates back to the early 1940s in Nashville, Middle Tennessee and southern Kentucky.
This is a very good fit for Tri Star Energy, and we wish them success in their company's continuing operations, said Perkins.
Jewell said Tri Star has no so specific growth plans at this time. We're always looking for good opportunities, but we don't have anything else on out plate right now.
Morgan Keegan & Co. Inc. served as financial advisor to Consumers Gasoline Stations. Financing for the transaction was provided by Bank of America N.A. in Nashville.
Houston-based Motiva is a refining and marketing joint venture owned by affiliates of Shell and Saudi Aramco. Motiva's marketing operations support a network of more than 8,000 Shell-branded gasoline stations in the eastern and southern United States.