FORT WORTH, Texas -- As part of deal that expands its reach geographically, Fort Worth, Texas-based Textron Energy, a subsidiary of Classic Star Group LP, has acquired the Mr. Zip convenience store chain from Mr. Zip Inc. of Tennessee. The acquisition includes 16 branded stores and a wholesale fuels business along the I-75 corridor between Knoxville and Chattanooga, Tenn.
"With the Mr. Zips acquisition, Classic Star strategically expands its distribution footprint into the Tennessee and Mid-South region," said Mark Radosevich, president of PetroActive Real Estate Services LLC, Coral Gables, Fla., which provided financing consultation and coordination for the transaction.
Mike Ali, president of Classic Star Group, said, "We are happy that we have added the Mr. Zips operation into our business and are excited about the prospects of enhancing overall store performance and extending our proven fuels distribution formula to support our retail customers' success."
Official with Mr. Zip Inc. of Tennessee did not respond to CSP Daily News requests by press time.
As reported in a Raymond James/CSP Daily News Flash, Fort Worth, Texas-based Classic Star Group is a family-operated, multi-branded fuel wholesaler with operations in five southwestern states. With this acquisition, the company now serves more than 400 retail customers.
The East Tennessee subsidiary will be based in Cleveland, Tenn., in the existing offices of Mr. Zip.
Meanwhile, Textron supervisors applied to the City of Knoxville Beer Board for sales licenses for three of the stores, reported The Chattanoogan. After hearing that the manager personally teaches Training for Intervention Procedures (TIPS) classes to all employees, and that the business is registered with the Responsible Vendor Program, the board gave new beer licenses to the three locations.
Mr. Zip is a family-owned and -operated chain of 16 c-stores in eastern Tennessee and Georgia. In business since 1974, the chain distinguished itself from competitors by its pricing on milk and dairy items, beer specials, store cleanliness and employee pride, according to CSPedia. The location are branded Chevron and CITGO; the company also delivers fuel to 10 other c-stores in the area. The chain has no foodservice. All units sell fuel, and 24 stores sell beer, but not wine. Mr. Zip has private-branded products, including Mr. Zip bottled water and Zippy Bean Coffee. Units range in size from 2,000 to 5,000 square feet.
Management has spent the past few years shuttering locations that have been lagging in sales.
Classic Star Group provides fuel distribution and marketing of petroleum products to more than 370 locations in Texas and surrounding states. It has operated gas stations for 12 years. It started providing fuel distribution services in 1999. The company provides assistance with all aspects of the business, including site development, construction, branding and wholesale fuel distribution, it said.
It currently distributes many brands of fuel as well as unbranded fuel products--Shell, Exxon, Mobil, Chevron, Texaco, Valero, ConocoPhillips, CITGO and Alon.
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