First Reserve, the private equity owner of Refuel Operating Co. LLC, is “exploring strategic options including a potential sale that could value the U.S. convenience-store operator at more than $1.5 billion including debt,” people familiar with the matter told Reuters.

According to the sources, the private equity firm is in talks with investment bankers to launch a sale process for the convenience store operator in the first half of 2025. The sources cautioned that a deal is not guaranteed and that First Reserve may still keep the business.

Reuters reported that potential buyers include other store operators and buyout firms. The sources stated that “Refuel could command a valuation equivalent to about 13 times its core annual earnings of roughly $120 million.”

Since First Reserve acquired Refuel in 2019, the company has mostly grown through acquisitions of other store operators. Some of these acquisitions include: West Oil Inc. with 25 c-stores; Double Quick Inc. with 48 c-stores and five standalone QSRs; and Albemarle Oil Co.

Refuel currently owns around 230 convenience stores and gas stations, mainly in North Carolina and South Carolina, as well as other states including Mississippi, Arkansas, and Texas.

In January 2022, the company received a $511 million capital infusion to continue pursuing acquisitions.