Wednesday, December 23, 2009
Daily's Divests - Tri Star Energy chain to sell Tennessee stores with plans to grow elsewhere
Source: CSP Daily News
NASHVILLE, Tenn. -- Citing plans to invest elsewhere in its business, Tri Star Energy LLC, owners of the Daily's chain of stores, will sell off "a number of convenience stores and retail gasoline outlets in Tennessee" early next year.
It's a matter of "rationalizing some older stores and turning that money around to use it for future opportunities," CEO Steve Hostetter told CSP Daily News.
Proceeds from the divestiture are to be used for expansion and acquisition opportunities currently available to the company.
While the company did not say how many stores will be sold, the preliminary list includes "a diverse mix of company-operated and consignment sites (with and without real estate interests) and supply-only sites with equipment, as well as several parcels of undeveloped land," according to a press release.
As reported in a CSP Daily News Flash yesterday, the locations and business interests will be sold through a sealed bid sale in a "buy one, some or all" format. A brochure with a finalized list of sites and full information will be available the week of Jan. 10, 2010. Current plans call for bids to be due on Feb. 18.
NRC Realty & Capital Advisors LLC, Chicago, will conduct the auction.
"We are pleased to be working with NRC on this divestiture," Hostetter said. "NRC's sealed bid process has proven to consistently produce the greatest number of bids and the highest proceeds, with closings occurring in the shortest amount of time."
Tri Star currently operates and/or supplies fuel to about 240 sites, concentrated in central Tennessee but also extending into eastern Tennessee and Kentucky. The sites being divested are scattered throughout the company's operating territory. Gasoline brands of the sites include Shell, Exxon, and BP.
"This sale offers some great opportunities for qualified buyers," said Dennis L. Ruben, managing director of NRC. "These are solid operating stations. We encourage anyone currently operating in these markets?or interested in operating in them?to take a serious look at the portfolio when it is released early next year."
Founded in 2000, Tri Star is a joint venture of Kimbro Oil Co., The Parman Corp. and Motiva Enterprises LLC. Tri Star Energy, Nashville, Tenn., distributes fuel operates 100 convenience stores under the Daily's Convenience Stores brand in Tennessee and Kentucky.
Daily's made perhaps its most significant acquisition in August 2007 when it absorbed 57 Scot Markets from Consumers Gasoline Sta