Dublin private equity firm Ion Equity has increased the reach of its energy empire with the acquisition of British fuel supplier Blue Ocean Associates Group in a deal understood to be valued at €150 million-€200 million. Arthur Beesley, Senior Business Correspondent, reports.
Already the owner of Topaz Energy, which controls the former Shell and Statoil operations in Ireland, Ion will use Blue Ocean as a platform from which it will embark on a drive to build a large-scale British and international business.
"We're exploring the possibility of some interesting bolt-on acquisitions that can help us to drive this business forward. We'll look at opportunities in Ireland, in the UK or in Europe if we believe they will add value," said Ion chief Neil O'Leary.
Ion said the company's annual turnover is in the region of £1 billion (€1.45 billion), excluding duty. The consideration was not disclosed, although industry sources said its value was significantly greater than €150 million.
The transaction gives Ion control of a business that commands 5 per cent of the market for all road fuels in the British market. That share comes from the supply of 1.8 billion litres of fuel per year.
Blue Ocean Associates supplies another 1 billion litres of blended fuel products to markets outside Britain.
Blue Ocean Associates Group was privately held. The prime beneficiary of the deal is Rick Grimm, a British businessman based in Monaco.
He and other senior managers have reinvested a proportion of the proceeds of the sale back into the business and will retain an interest.
Ion said the deal was separate to its investment in Topaz, which has financial support from business figures such as telecoms tycoon Denis O'Brien and Galway developer Gerry Barrett. There are no plans to combine Blue Ocean with Topaz, it said.
An unsuccessful bidder in 2005 to buy the freehold interest in Shell's 180 filling stations in Britain, Ion has been exploring deal opportunities in the British fuel market for some time.
Mr O'Leary said there were "significant investment opportunities" in the international fuels business.
"Many of the major international fuel companies are refocusing their efforts on upstream opportunities [ exploration and production] and emerging markets. This opens the possibility of acquiring good fuel and infrastructure assets in leading economies," he said.
"Blue Ocean Associates has a proven business model and has been at the forefront of the developing bio-fuels market in the UK. Together with its strong management team and valued client base, this positions the company strongly for future growth."
The deal includes the interests of British firm Harvest Energy, which blends and supplies fuel to a range of large British customers. Clients include some of the big supermarket chains and transport operators.
It also also includes Blue Ocean Associates in Amsterdam, a trading business which blends gasoline for sale to markets internationally.
"The company has access to considerable storage capacity and enjoys product exchange agreements with some of the major oil companies in the UK," Ion said.
Former Chevron and Texaco executive Colin Bannerman has been appointed chief executive of Blue Ocean. He is also an investor in the deal.
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