Why This Matters: Shell’s acquisition of Tri Star Energy will give it full control of a fuel distribution business supplying hundreds of dealer-owned locations while significantly expanding its company-owned convenience-store network in the Southeast.
Shell is expanding its U.S. fuel distribution and retail network with a deal to take full ownership of Tri Star Energy LLC, a convenience-store operator and fuel distributor with operations across the Southeast.
Equilon Enterprises LLC, doing business as Shell Oil Products US, agreed to acquire the remaining 67% of Tri Star that it does not already own. The Nashville-area company operates 320 fuel and convenience-store locations and has supply agreements with another 552 dealer-owned sites in Tennessee and surrounding states.
Shell will acquire the remaining interest from The Parman Corp., Kimbro Oil Co., and their subsidiaries. Financial terms were not disclosed. The transaction is expected to close by the end of 2026, subject to regulatory approval and other closing conditions.
The acquisition gives Shell greater control over both sides of its U.S. fuel distribution strategy: directly operated retail locations and the wholesale supply of fuel to independently owned dealers.
Once the transaction closes, Tri Star will be operated by Texas Petroleum Group LLC, a wholly owned subsidiary of Shell Mobility & Convenience US LLC. The combined Shell business will have 550 company-owned convenience stores and supply agreements with about 650 dealer-owned locations across the southern U.S.
That represents a significant expansion of Shell’s directly controlled U.S. distribution and retail operations. Shell already has about 12,000 branded fuel and convenience locations across 49 states, but most are owned and operated by wholesalers and dealers. The network serves more than 7 million customers daily.
The Tri Star deal gives Shell a larger company-owned footprint while preserving the dealer distribution model that provides much of its national reach. It also adds density in the Southeast, particularly around Nashville, where Tri Star has built its core business.
“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 announcing the deal. She said the transaction fits Shell’s strategy of concentrating investment in businesses where it believes it has competitive advantages.
Shell said the acquisition is part of a broader effort to shift capital toward higher-return businesses and priority markets. The company plans to spend 80% of growth capital expenditures in its Mobility & Convenience business in 10 key markets, including the U.S., which Shell said generates most the business’s cash flow.
The company said the Tri Star acquisition is expected to generate a return above the hurdle rate established for Shell’s marketing business.
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