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CLEVELAND, Tenn. -- Mr. Zips, consisting of 16 convenience stores in eastern Tennessee and a wholesale fuels business, was acquired today by Textron Energy. Terms of the deal were not disclosed.
The Mr. Zips business will become the East Tennessee subsidiary of Textron, which itself is a subsidiary of Classic Star Group LP of Fort Worth, Texas. Classic Star Group is a multi-branded wholesaler with operations in five southwestern states. Following the Mr. Zips acquisition, Classic Star will serve more than 400 retail customers.
"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," said Mike Ali, president of Classic Star Group.
According to a news release, current Mr. Zips staff and management will be retained and the East Tennessee subsidiary will be remain in Mr. Zips current Cleveland, Tenn., offices.
"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 Services, who provided financing consultation and coordination for the transaction. "The quality, location and tight concentration of the stores combined with an excellent platform to expand their services into six or seven nearby states."