Essar Energy Transition Retail Acquires UK Forecourt Operator SGN Retail For £250 Million
· Free Press Journal
Essar Energy Transition Retail (EET Retail), a unit of Cheshire-based Essar Energy Transition Fuels (EETF), has announced an agreement to acquire the entire shareholding of SGN Retail, a major independent forecourt operator in the UK, for £250 million ($338 million).
Visit syntagm.co.za for more information.
“The transaction adds 118 high-quality forecourt locations to EET Retail’s portfolio. Combined with EET Retail’s existing estate of 117 sites, the transaction establishes a scaled, nationwide mobility platform of 235 fuel forecourts with annual throughput exceeding 650 million litres,” the company said in a statement.
The acquisition will be financed through a mix of cash and a newly arranged £250 million senior debt facility.
The financing has been organised by a consortium comprising First Abu Dhabi Bank, Macquarie Bank, Mizrahi Tefahot Bank, Natixis, OakNorth Bank, Royal Bank of Canada, SMBC Bank International and Sound Point Capital Management.
Essar Future Energy To Invest ₹5,100 Crore In Large-Scale Bio-Fuel Complex In GujaratEssar Energy Transition said its UK strategy is focused on combining fuel production with retail distribution to create an efficient and dependable supply model. “The transaction creates the second-largest UK forecourt network that is backwardly integrated with fuel production,” it said.
The SGN Retail deal is also expected to support EET Retail’s long-term expansion plans. The company aims to increase its network to 800 forecourts by 2031, allowing it to supply fuel directly to locations representing about 9% of the UK market.
“EET Retail believes that the combination of demographic growth, the rise of multi-car households and the declining number of forecourts in the UK create an attractive outlook to invest in the forecourt sector,” the company said.
The company added that directing fuel refined at the Stanlow refinery straight to EET Retail’s forecourts would strengthen domestic supply security. The arrangement is expected to enable more efficient distribution of UK-refined fuel to consumers across the country.