Dublin-based PE investor Ion Equity has expanded its portfolio with the acquisition of independent UK fuel supplier Blue Ocean Associates Group by way of an MBO thought to value the business in the range of €150-200 million (£111-£149 million).
Dublin-based PE investor Ion Equity has expanded its portfolio with the acquisition of independent UK fuel supplier Blue Ocean Associates Group by way of an MBO thought to value the business in the range of €150-200 million (£111-£149 million).
Ion owns about 80 per cent of the new company. Rick Grimm, the main shareholder, and other senior management at Blue Ocean have agreed to reinvest part of the sale proceeds into the business.
As part of the deal, Colin Bannerman, a former executive with Chevron and Texaco, has been appointed chief executive.
Blue Ocean supplies around 5 per cent of all road fuels used in the UK through major supermarket chains and transport operators, as well as around one billion litres of blended fuel products sold internationally.
The transaction encompasses the businesses of Harvest Energy, which blends and supplies motor fuel to large customers in the UK, and Blue Ocean Associates in Amsterdam, which blends petrol for sale to international markets.
The group is thought to turn over more than £1 billion, excluding duty.
Neil O’Leary, Ion Equity chief executive, said Blue Ocean was “an ideal platform” to build UK and international fuel businesses. “We’ve already committed to plans to expand operations and we’re exploring the possibility of some interesting bolt-on acquisitions that can help us to drive this business forward.”
O’Leary has said that the company will be looking at growth opportunities in Ireland, the UK and Europe.
Law firm Starr & Partners advised on the deal and was led by partner Ian Burton, with assistance from associate Hetal Gir and paralegal Natalia Tuson. Burton has established a long-standing relationship with Blue Ocean, working with its in-house counsel, Keith Ott, for more than ten years.
Burton said: “Keith Ott is an experienced transactional lawyer and so was quite capable of understanding and negotiating the Blue Ocean sale documentation. What he needed, and received, from Starr & Partners in this transaction was a lawyer with whom he could work closely as part of a genuine team.”
The adviser’s role in the transaction was to provide practical support and guidance to Keith Ott in order to complete the transaction efficiently and cost-effectively. The two lawyers handled almost all legal aspects of the deal for the selling shareholders.
Anglo Irish bank also provided acquisition finance.
