Luke Oil Acquires 12 Shell Locations in Illinois

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Luke Oil Acquires 12 Shell Locations in Illinois

HOBART, Ind. -- Luke Oil Co., a petroleum marketer to more than 100 locations and operator of 20 c-stores headquartered here, completed the acquisition of 12 Shell-branded locations from RM Petroleum, which includes retail locations and supply contracts at dealer-operated sites, the company stated.

With the purchase, Luke Oil operates 25 retail locations. It also operates 10 car wash facilities. The company supplies Shell, Mobil, Marathon, CITGO and Phillips fuel brands.

Tom Collins, Jr., vice president of Luke Oil, told CSNews Online the sites are a nice fit for the company.

"It allows us to become the only Shell jobber in the Lake County market," he said, noting there were two Shell marketers in the region previously. "It also allows us to control the quality of the Shell brand and its representation in Lake County."

The convenience stores included in the purchase will be transitioned to the Luke’s format, which includes an extended beverage offering, Noble Roman’s pizza, Broaster Chicken and $5 car washes for sites with the service, he added. Car washes at those sites will be transitioned to the company’s format, and stores without car washes will see the addition of the facilities, Collins said.

The deal also positions the company to grow further in the Chicago area. "We wanted to do this deal to show we are ready for any deal in Chicago, should it present itself," Collins told CSNews Online, adding potential sites must have real estate large enough to accommodate six dispensers and a tunnel car wash, and have a 3,000-square-foot c-store.

Luke Oil will continue to grow in the future, said Collins. He has intentions to complete two additional site acquisitions by the end of the month and is on pace to open three new locations currently under development, by the end of the year.