CINCINNATI -- Cincinnati-based Gilligan Oil Co. more than tripled its store base this week with the acquisition of 33 retail sites and 10 fuel supply contracts from Shell Oil Product US, as reported yesterday in a CSP Daily News Flash. Two of the purchased sites were subsequently closed, according to Gilligan Oil Co. president Pat Gilligan, who said he jumped at the opportunity to purchase the stores.
In todays market, theres some value to being larger, relative to running the organization,VbCrLf he told CSP Daily News, but really, [image-nocss] they were key assets and were not growing just to grow. We felt like it was a great opportunity and thats the main reason we seized it.VbCrLf
Gilligan Oil now owns and operates 45 c-stores under the Shell Food Mart and ExxonMobil On The Run banners. Well continue to company operate them,VbCrLf Gilligan said. Weve got a bunch of construction plans to go in and improve the Shell facilities.VbCrLf
The company also supplies Shell, Exxon and Sunoco gasolines to 40 other sites. With the deal, Gilligan begins selling and supplying Shell gasoline for the first time, a concerted effort, said Gilligan. They have No. 1 [gasoline] market share here in Cincinnati,VbCrLf he said. [So we targeted them] because they were never distributor-supplied here before.VbCrLf
Gilligan Oil specializes in market revitalization, according to Gilligan. Our success is built on a commitment to quality, value and service,VbCrLf he said. We look forward to providing Cincinnati residents with quality products, exceptional service and competitive prices under the Shell banner.VbCrLf
The sites were offered for bid last year with a number of parties participating, according to Shell. Based on a confidentiality agreement between the parties, the purchase prices were not disclosed.
Last fall, Shell announced its intent to transition retail assets to wholesale in 16 regions to better support its wholesale. Stu Crum, Shells general manager of retail strategy and portfolio U.S., explained, "Shell's strategy of growth through the wholesale class of trade is exemplified through this sale. We are very pleased that an operator of Gilligans stature has acquired these assets and will continue to grow and enhance the Shell brand in the Cincinnati area."
Similarly, Shell sold 29 sites and three supply contracts in the Columbus, Ohio, area to affiliate True North Energy LLC, Toledo, Ohio, late last month.
Shell Oil Products US, a subsidiary of Shell Oil Co., has a network of approximately 6,500 branded stations in the western United States.
Gilligan Oil Co. LLC provides gasoline to customers through its company-operated and dealer-operated channels of distribution. Its service portfolio includes convenience stores, gas stations, car washes and quick-serve restaurants.Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.