MALTA — Stewart’s Shops started the year with acquisition of a fuel distribution business and a handful of convenience stores from a Rensselaer company.
It plans to end the year with the acquisition of another fuel distributor and its eight convenience stores.
Stewart’s announced the proposed purchase of Schenectady-based Red-Kap on Friday. The deal, which is not finalized yet, would give Stewart’s more than 75 new fuel supply customers in addition to three car washes and the eight stores, some of which it plans to rebrand as new Stewart’s locations.
More details are expected to be finalized and made public in January.
Early this year, Rensselaer-based Polsinello Fuels opted to exit the retail gasoline market. It retained its lubricants business but sold its fuel distribution business and five convenience stores to Stewart’s Shops. One of the five will reopen next month as a Stewart’s, the other four remain in operation under other names by merchants who lease the sites from Stewart’s Shops.
“Stewart’s is in growth mode,” a company spokeswoman said. The company’s retail expansion and renovation plans were slowed this year by the COVID-19 pandemic but the multiyear initiative remains underway. Acquiring the two distributorships opens new opportunities for the Malta-based company.
Stewart’s operates 338 convenience stores under its own name. It plans to convert some of the eight Red-Kap stores to Stewart’s Shops when the deal is completed.
Stewart’s President Gary Dake said the company values its vertical integration and support, and the Red-Kap deal will allow it to expand that dealer/distribution network.
“Both organizations come from long local family histories that have helped form the communities where we live,” Dake said of Red-Kap and Stewart’s. “The acquisition will add eight corporately run locations and a significant addition of gasoline supply and distribution to local stations.”