Shell to fully acquire Tri Star Energy, more than doubling its US company-owned c-store footprint

Deal lifts Shell to full ownership of Tri Star Energy

Equilon Enterprises LLC, doing business as Shell Oil Products US, is increasing its equity investment in Southeastern convenience retailer Tri Star Energy from 33% to 100%, according to a Shell announcement carried Tuesday by C-Store Dive. The transaction gives Shell full control of Tri Star's 320 fuel and convenience retail sites in Tennessee and surrounding states, along with supply agreements with 552 dealer-owned locations.

The remaining interests are being acquired from the Tennessee-based entities The Parman Corporation and Kimbro Oil Company and their subsidiaries. Shell did not disclose a purchase price.

Operational handoff to Texas Petroleum Group

Once the deal closes, Tri Star will be operated by Texas Petroleum Group, a wholly owned subsidiary of Shell Mobility & Convenience US, Shell's c-store division in the United States, according to the announcement. Following the integration, Shell Mobility's portfolio will include nearly 550 company-owned convenience retail sites and supply agreements with approximately 650 dealer-owned sites across the southern US, the announcement states.

Kimbro to take Tri Star's commercial fuel business

Kimbro Oil Company said in a separate announcement that it will acquire Tri Star Energy's commercial fuel business, which will continue to operate independently of the sale to Shell. The carve-out separates Tri Star's wholesale and commercial fuel operations from the retail and dealer network that Shell is absorbing.

Rationale and capital allocation framing

Shell framed the deal as part of its strategy to reallocate capital from lower-return areas to businesses and markets where it has clear competitive advantages. The company previously said 80% of its growth cash capital expenditure in its mobility and convenience business will be spent in 10 key markets, including the US, where it generates the majority of its cash flow, according to the announcement.

"Tri Star has built a strong business with high-quality assets, a dedicated team and a loyal customer base," Machteld de Haan, Shell's president of downstream, renewables and energy solutions, said in the announcement. "The transaction is fully aligned with our growth strategy to focus capital on businesses in which we have distinctive advantages and can create long-term shareholder value."

Timing, background and remaining uncertainty

The transaction is expected to close by the end of 2026, according to the announcement. Tri Star, founded in 2000, exits the convenience-retail industry as economic headwinds continue to pressure small and mid-size operators, per the announcement. Shell did not disclose a purchase price, leaving deal value as a material gap in the public record.