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Two former competitors in the commercial fuels and lubricants business have agreed to a deal that will allow both companies to grow.

Tarr LLC, which has operated a chemical, fuel and lubricants business at 2429 N. Borthwick Ave. in Portland for 50 years, has sold the facility and its fuel and lubricants business to Eugene-based Tyree Oil Inc. for an undisclosed price.

The move is part of a plan several years in the making and allows Tarr to concentrate on its core strengths, said Skip Tarr, president and owner of the company. Tarr in July 2013 started construction on a new 50,000-square-foot, self-contained facility with rail access, and plans to relocate its chemical operations there in March, Tarr said.

“It’s a big project,” he said. “The new facility will accommodate our chemical distribution and manufacturing business, which is the heart and soul of what Tarr does across the western United States.”

Portland-based Perlo Construction is building the $9 million facility, on four acres at 2946 N.E. Columbia Blvd. near Portland International Airport. The project will be completed by March, Tarr said.

Tyree Oil, meanwhile, is increasing its presence in the Portland area. The company works with major oil companies, picking up blended fuels and lubricants and repackaging them and distributing them to commercial customers, including construction companies.

“We’ve been looking for opportunities to get into the Portland market for some time now,” said Ron Tyree, president of Tyree Oil. “This deal became available since he’s moving – it gave us the opportunity to lease his facility.”

Additionally, Tyree announced it has purchased Portland-based StarOilco’s lubricant distribution business. Terms were not disclosed, and StarOilco’s fuel distribution and cardlock business is not affected. StarOilco has been in business since 1936.

The deals include assets, customer lists and distribution channels. Additionally, Tyree is gaining 10 employees from Tarr and StarOilco as part of the transactions, Tyree said.