Essar Energy Transition's retail arm to acquire UK forecourt operator SGN for 400 million pounds

Essar Energy Transitions retail arm has agreed to acquire independent UK forecourt operator SGN Retail in a deal estimated at about 400 million pounds adding 118 sites to its network and creating a 235site estate as it seeks to build a vertically integrated fuel business in BritainEET Retail the retail division of Essar Energy Transition Fuels in a statement said it had agreed to acquire 100 per cent of SGN Retail which was founded by Graham Peacock and Susan TobbellWhile the company did not disclose the financial details sources said the deal is estimated to be about 400 million poundsThe deal will give EET Retail annual fuel throughput of more than 650 million litres combining SGN Retails 118 locations with the 117 sites already operated by EET RetailEET Retail said the enlarged network would make it the UKs secondlargest forecourt operator with direct integration into fuel production It plans to expand the network to about 800 sites by 2031 equivalent to roughly 9 per cent of the UK market with fuel supplied by Essars Stanlow refinery in CheshireBuilding a scaled vertically integrated retail forecourt platform is a critical pillar of our longterm UK strategy SGN Retail is one of the highestquality 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 RetailThe acquisition comes as EET seeks to reconnect fuel production with retail distribution arguing that the UKs fuel market has become increasingly fragmented over the past two decades as oil majors reduced investment in domestic refiningEET said the model would allow fuel refined at Stanlow to be distributed more directly to its own forecourts reducing reliance on imports and multiple layers in the domestic supply chainThis is a unique bestinclass opportunity and advances a core part of our MampA strategy The transaction is backed by a toptier group of banks spanning four continents several supporting the UK forecourt sector for the first time underscoring confidence in our backwardintegrated growth model and in the UK fuels and convenience markets said Viral Gathani Head of Strategic Transactions at Essar Energy Transition EETThe transaction is being financed through a combination of cash and a new 250 million pound 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 ManagementRBC Capital Markets was the financial adviser with Herbert Smith Freehills Kramer and Weightmans serving as legal advisers to EET Fuels and EET RetailThe acquisition is part of Essar Energy Transitions broader plan to expand presence across the UK energy supply chain Its Stanlow Manufacturing Complex in Cheshire produces about 18 per cent of the UKs transport fuels according to the companyEET said its retail expansion will allow more Stanlowrefined fuel to reach UK motorists directly which it argued can strengthen domestic supply resilience amid global supply disruptions and refinery closuresThe company also plans to expand services across its forecourt estate including hot food convenience retail vehicle valeting and electricvehicle chargingEET has outlined an investment pipeline of 43 billion pounds through 2035 for lowcarbon energy transition projects in the UK with Stanlow at the centre of its plans to develop an energy transition hub in northwest EnglandSGN Retail was founded in 2016 and operates 118 roadside locations across the UK alongside retail convenience and foodtogo brandsThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever