HOUSTON -- Motiva Enterprises LLC, which markets the Shell brand in the eastern United States, has sold its interest in 47 sites to wholesaler Sam's Real Estate Holdings of Georgia LLC.
As reported yesterday in a CSP Daily News Flash, Sam's Holdings will continue to fly the Shell flag over these sites located in the greater Atlanta metropolitan and northern Georgia areas.
With this agreement, Sam's Holdings and affiliates will now supply more than 200 million gallons of Shell-branded fuel annually. In addition to the newly acquired 40 [image-nocss] fee property sites and seven leases, Sam's Holdings currently operates nearly 50 other Shell-branded wholesale sites in North Carolina and South Carolina. The company has been a Shell-branded wholesaler since 1999.
Sam's Mart Inc. operates Sam's Mart and Express Mart convenience stores mostly in North Carolina, with a few in South Carolina.
Last fall, Shell and Motiva stated their intent to transition retail assets to wholesale in 16 regions to better support the wholesale business. Stu Crum, Shell's general manager of retail strategy and U.S. portfolio said, Shell and Motiva's strategies of growth through the wholesale class of trade are further exemplified through this sale. We are very pleased that an operator of Sam's Holdings stature has acquired these assets and will continue to grow and enhance the Shell brand in the Atlanta and northern Georgia areas.
According to Sami Nafisi, owner and president of Charlotte, N.C.-based Sam's Mart and Sam's Holdings, This acquisition opens the door to another major metropolitan area that will provide us with potential to grow and surpass our established goals. There is no doubt that Motiva also will benefit from the success we hope to experience, which will continue to strengthen our business relationship. We believe in the strength and integrity of the Shell brand, including product quality, a bright and clean retail visual image and the credit card programs and promotions.
The sites were offered for bid earlier this year with a number of parties participating. According to a confidentiality agreement between the parties, the purchase prices have not been disclosed.
As reported late in 2006, industry-watchers have been keeping an eye on the selloff of 678 Shell stores as the oil company continues its conversion of all but nine markets to branded-wholesale status.
We are looking to provide transition opportunities to branded wholesale in [nine more] markets, Shell spokesperson Anne Peebles told CSP Daily News. Every transition is fully examined to ensure the sale goes to the company best qualified to operate the sites in that area. Opportunities have been provided to many wholesalers strategically aligned with Shell/Motiva.
Shell is transitioning in the United States to a branded-wholesale strategy in all but nine core marketsBoston, Chicago, Los Angeles, New York, San Diego, San Francisco, Seattle, Southeast Florida and Washington, D.C. In order for Shell to become the best fuels retailer in the world, Shell Oil Products US and Motiva Enterprises LLC continually evaluate the way that we do business to ensure the Shell brand is positioned for growth, Peebles said.
The change [of ownership] should be transparent to the consumers with the stations switching from direct to wholesale. Consumer services will not be interrupted, she said. The goal is to transition these markets between now and the end of 2007. After the transitions have been completed, Shell will own approximately 2,000 sites in the U.S.
Shell Oil Products US, a subsidiary of Shell Oil Co., Houston, has a network of approximately 6,600 branded stations in the western United States. Shell Oil Co. is an affiliate of the Royal Dutch Shell Group. Motiva refines and markets branded products through more than 9,000 branded stations in the eastern and southern United States. Shell Oil is a 50% owner of Motiva, along with Saudi Refining, Inc.
Sam's Real Estate Holdings of Georgia specializes in branded retail fuel and clean, well-stocked convenience store sites that are tailored to meet the individual needs of surrounding neighborhoods. Many of their nearly 100 locations feature customer attractions such as modern and convenient car washes as well as a varied foodservice program that includes fresh baked goods, custom blend Cafe de France Coffee and Coney Island's Nathan's Famous hotdogs.
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