Essar Energy Transition Retail (EET Retail) has agreed to acquire 100 per cent of UK-based SGN Retail, adding 118 forecourt locations to its network and accelerating its plan to build a nationwide fuel retail platform.
The acquisition will take EET Retail’s network from 117 to 235 forecourts, with combined annual fuel throughput exceeding 650 million litres. The expanded network will become the UK’s second-largest forecourt operator that is backward-integrated with fuel production.
EET Retail is the retail division of Essar Energy Transition Fuels, which operates the Stanlow refinery in Cheshire. The company plans to supply fuel produced at Stanlow directly to its retail network as it expands its presence across the UK.
Targets 800-Site Network By 2031
The acquisition forms part of EET Retail’s plan to expand to 800 forecourts by 2031, representing around 9 per cent of the UK market.
“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,” said Arvan Ruia, CEO of EET Retail.
“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,” he added.
SGN Retail was founded in 2016 by Graham Peacock and Susan Tobbell and operates 118 roadside locations across the UK. Its sites operate alongside retail, convenience and food-to-go brands.
EET Retail plans to expand its broader forecourt offering across areas including convenience retail, hot food, vehicle valeting and electric vehicle charging.
£250 Million Debt Facility To Support Transaction
The transaction will be financed through a combination of cash and a new £250 million senior debt facility.
The facility has been arranged by a group 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.
“This is a unique, best-in-class opportunity and advances a core part of our M&A strategy,” said Viral Gathani, Head of Strategic Transactions at Essar Energy Transition.
“The transaction is backed by a top-tier group of banks spanning four continents, several supporting the UK forecourt sector for the first time, underscoring confidence in our backward-integrated growth model and in the UK fuels and convenience markets,” he added.
Essar Energy Transition has an investment pipeline of £4.3 billion for low-carbon energy projects in the UK through 2035. Its strategy is centred on developing an energy-transition hub in north-west England while expanding its fuels and retail operations.