~EET Retail agrees to acquire 100% of SGN Retail, adding 118 UK forecourts and creating a 235-site nationwide fuel retail network.
STANLOW, CHESHIRE, Sep 14 (VNI): EET Retail Limited, the retail division of Essar Energy Transition Fuels (EET Fuels), has announced an agreement to acquire 100% of SGN Retail, a leading UK independent forecourt operator founded by Graham Peacock and Susan Tobbell.
According to EET Fuels, the transaction will add 118 high-quality forecourt locations to EET Retail’s portfolio. Combined with its existing 117 sites, EET Retail will establish a nationwide mobility platform comprising 235 fuel forecourts, with annual fuel throughput exceeding 650 million litres.
The acquisition is part of EET’s strategy to reintegrate the UK fuels supply chain by connecting fuel production directly with retail sales. EET Retail said the transaction will create the second-largest UK forecourt network that is backwardly integrated with fuel production, while substantially accelerating its roadmap to supply domestic fuel directly to 800 forecourts, representing around 9% of the UK market, by 2031.
EET said routing fuel refined at Stanlow directly into its retail forecourts will strengthen domestic supply security and enable more efficient distribution of UK-refined fuel to consumers. The integration of fuel production and retail operations is also expected to help eliminate cost inefficiencies for motorists at the pump.
Arvan Ruia, CEO of EET Retail, said building a scaled, vertically integrated retail forecourt platform is a critical pillar of the company’s long-term UK strategy. He said SGN Retail is one of the highest-quality forecourt networks in the UK and that the acquisition will accelerate EET Retail’s plan to build a nationwide platform of 800 sites backed by direct refinery supply.
Viral Gathani, Head of Strategic Transactions at Essar Energy Transition, described the transaction as a unique, best-in-class opportunity and said it advances a core part of the company’s M&A strategy. The transaction is being supported by a group of banks spanning four continents, reflecting confidence in the growth model and the UK fuels and convenience markets.
The transaction will be funded through a combination of cash and a new £250 million 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. EET Fuels and EET Retail were advised by RBC Capital Markets as financial adviser and Herbert Smith Freehills Kramer and Weightmans as legal advisers. VNI NEWS, EET Retail, SGN Retail, Essar Energy Transition Fuels, UK Forecourts, Fuel Retail, Stanlow, Energy Transition, UK Fuel Market, Arvan Ruia, EET Retail SGN Retail acquisition, UK forecourt network, Essar Energy Transition Fuels, SGN Retail acquisition, UK fuel retail, 235 forecourts, £250m senior debt facility, VNINews, VNINews.com