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By W.B. King
HOUSTON -- California-based Nakash Enterprises sealed a deal to acquire 20 branded Shell locations in Sacramento.
Due to proprietary a clause, Alex Clark, spokesperson for Shell Oil Products US, told CSNews Online he could not say how long the deal has been discussed or the purchase price, but only that it became official on April 30, 2008. "According to a confidentiality agreement between the parties, the purchase price cannot be disclosed at this time," Clark told CSNews Online.
Nakash Enterprises is an affiliate of Vintners Distributors Inc., a California-based real estate development and management firm that currently owns 22 Shell-branded locations in California. Clark said that while existing operators had the opportunity to bid on the locations, each respective operator chose to decline the offer.
"We're proud to add these Shell retail locations to our northern California portfolio," Nick Goyal, managing member of Nakash Enterprises, said in a released statement. "Shell is among the most recognized premium retail brands among consumers and all Shell gasolines stop gunky build-up on critical engine parts to help cars perform at their best. Like Shell, we are committed to providing motorists with high-quality fuels and excellent customer service."
Bill Spurgeon, west region general manager for Shell Oil Products US, said in a released statement, "Vintners Distributors has a strong history of growing the Shell brand in California. The company's lengthy experience as a Shell operator, coupled with its extensive knowledge of the retail fuel market in northern California, will help to strengthen the Shell network in Sacramento."
Clark said this deal supports "Shell's vision to become the best fuels retailer in the world and the sale of these markets is in line with our previously announced
strategy to move to a wholesale focused business model."
In addition, Clark told CSNews Online, "We will continue to actively pursue opportunities that will increase the growth of the Shell brand in the U.S. over the next several years."
When asked if additional locations in or around California are also being considered for sale, Clark responded, "As part of Shell's ongoing portfolio assessment, properties do become available from time to time. Information regarding pending or future deals can not be disclosed."