Mergers & Acquisitions

H&S Energy Acquires Convenience-Store, Fuels, Car Wash and Other Businesses of Andretti Petroleum Group

C-store retail and distribution company founded by racing icons includes nearly 170 locations and additional assets in California, Oregon and Washington
H&S Energy Andretti Petroleum convenience stores
Logos/H&S Energy, Andretti Petroleum

H&S Energy LLC has acquired the retail convenience-store, fuels distribution, cardlock, fleet card, commercial fueling, car wash, lubricants and transportation businesses of Andretti Petroleum Group.

Ahead of the deal, Orange, California-based H&S Energy has more than 160 convenience stores under the Chevron, Texaco, Shell and 76 fuel brands. It operates its c-stores under the ExtraMile banner and under its own proprietary brand, Power Market.

  • H&S Energy is No. 51 on CSP’s 2023 Top 202 ranking of U.S. convenience-store chains by size.

Andretti Petroleum Group consists of nearly 170 retail convenience stores and fuels distribution assets in California, Oregon and Washington. It is one of the largest convenience retail and fuels distribution businesses on the West Coast and Pacific Northwest, operating in northern California, Oregon and Washington. It was founded in 1997 when racing icons Mario Andretti, Michael Andretti, long-time Andretti advisor John Caponigro and Texaco executive M.J. Castelo launched a startup Texaco wholesale business in northern California.

Mario Andretti had always been interested in the fuels business after having worked at his uncle’s gas station with his twin brother, Aldo, just three days after moving from Italy to America at the age of 15. In 1998, the business developed its flagship Texaco facility in downtown San Francisco, which featured an Andretti SpeedMart convenience store, an Andretti Winning Finish car wash, a Burger King and the first Starbucks integrated into a convenience store.

Over the next 25 years, M.J. Castelo grew the company to be one of the largest convenience retail and fuels distribution businesses in the West through organic growth and a series of acquisitions, the company said.

The enterprise completed its first major acquisition in 2001, when it purchased a chain of convenience stores and dealer operations in Monterey County, California. In 2005, the company expanded further north with the acquisition of Humboldt Petroleum’s 16 company-operated stores. Andretti’s most transformative acquisition occurred in 2017, when it purchased Colvin Oil Co., Grants Pass, Oregon. The Colvin transaction more than doubled the size of the company and added retail, wholesale, transportation, commercial fuels and lubricants operations.

Over the past few years, the company has continued to expand via acquisition, most notably through the acquisitions of Sheldon Oil and Stein Oil, while also rolling out a comprehensive rebranding effort through its proprietary Pinnacle 365 store brand and proprietary loyalty program.

“We are delighted to transact with H&S Energy as the new steward of our enterprise,” said Castelo, CEO and managing member of Andretti Petroleum Group. “Our companies share similar stories, starting with single sites, then growing into formidable players in our industry. This transaction will be a win for all stakeholders.”

H&S Energy was founded by Sal Hassan in 1996 with one gas station. Hassan’s vision was to have larger-footprint convenience stores that offered customers a variety of snacks, hot food, fresh coffee and cleanest restrooms.

“We are honored to take on this great portfolio of retail sites, wholesale distributorship, cardlocks, lubricants and transportation assets,” Sal Hassan, founder and CEO of H&S, said. “We believe the people on both ends of this transaction, when put together, will bring great synergies and help take H&S to the next level. Working through this transaction with the help and professionalism of everyone involved made the process smooth and simple.”

Matrix Capital Markets Group Inc., an independent investment bank, advised Andretti Petroleum Group on the sale. Richmond, Virginia-based Matrix provided merger-and-acquisition advisory services including valuation advisory, marketing the business through a confidential, structured sale process and negotiation of the sale. Cedric Fortemps, co-head of Matrix’s Downstream Energy & Convenience Retail Investment Banking Group, Andrew LoPresti, vice president, John Mickelinc, senior associate, and James Mickelinc, associate, managed the transaction.

“M.J. and the Andretti team have built an incredible business through thoughtful, strategic growth, meticulous execution and unparalleled passion to be the best across the entire organization,” said Fortemps.

John Caponigro, Hank Wineman and Gabriella Tringali of Frasco, Caponigro, Wineman, Scheible, Hauser and Luttmann and Otto Konrad and Kaitlin Cottle of Williams Mullen served as legal counsel for Andretti Petroleum Group. Robert Sahyan, Michael Leake and Aaron Duffy of Sheppard Mullin, Jeffrey Reuben of Elkins Kalt, and Paula Bailey, General Counsel of H&S Energy served as legal counsel for H&S.

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