Stanlow, Sept. 14 -- EET Retail Limited, the retail division of Essar Energy Transition Fuels (EET Fuels), on Monday announced an agreement to acquire 100 per cent of SGN Retail, a UK forecourt operator founded by Graham Peacock and
Susan Tobbell.
The acquisition will add 118 locations to EET Retail's existing 117 sites, creating a nationwide network of 235 fuel forecourts with annual throughput exceeding 650 million litres.
The deal will create the UK's second-largest forecourt network backwardly integrated with fuel production.
Fuel refined at Stanlow will be distributed through EET Retail forecourts, strengthening domestic supply security and helping reduce cost inefficiencies for motorists.
The company aims to supply fuel directly to 800 forecourts, or around 9 per cent of the UK market, by 2031.
"Building a scaled, vertically integrated retail forecourt platform is a critical pillar of our long-term UK strategy. SGN Retail is one of the highest-quality forecourt networks in the UK well ahead of the market. This acquisition accelerates our plan to build a nationwide, vertically integrated platform of 800 sites, backed by direct refinery supply and delivering competitive prices at the pump for UK motorists," said Arvan Ruia, CEO of EET Retail.
The transaction will be funded through a combination of cash and a new £250m senior debt facility arranged by First Abu Dhabi Bank, Macquarie Bank, Mizrahi Tefahot Bank, Natixis, OakNorth Bank, Royal Bank of Canada, SMBC Bank International and Sound Point Capital Management.
RBC Capital Markets was the financial adviser, while Herbert Smith Freehills Kramer and Weightmans were legal advisers.
Published by HT Digital Content Services with permission from Millennium Post.