Essar Energy Transition to acquire 118 SGN Retail forecourts

Cheshire-based Essar Energy Transition has agreed to purchase 118 fuel forecourts from SGN Retail. The transaction, which carries an undisclosed fee, is estimated to be valued between £400 million and £450 million. This acquisition represents a significant return for the founders of SGN Retail, Graham Peacock and Susan Tobbell, who established the business in 2016.

The deal will expand Essar Energy Transition’s existing network of 117 sites across the United Kingdom to a total of 235 forecourts. Upon completion, the combined estate is expected to handle an annual throughput of over 650 million litres. The company stated that it is committed to a business model that integrates the manufacture of fuels with their direct sale to consumers. It noted that the UK market has become fragmented over the past two decades as oil majors reduced domestic refinery investments, resulting in a complex and inefficient supply chain.

As an Indian-owned entity, Essar Energy Transition intends to redirect fuel refined at the Stanlow refinery, a key component of the HyNet industrial cluster programme. The associated HPP1 plant is seeking a final investment decision to become a low-carbon hydrogen producer in the North West. It is positioned as a key emitter for the track 1 winning scheme and aims to capture 600,000 tonnes of carbon dioxide at its 350 MW capacity facility.

Arvan Ruia, chief executive of EET Retail, described the move as a critical pillar of the company’s long-term UK strategy. He stated that the acquisition accelerates plans to build a nationwide, vertically integrated platform of 800 sites. This platform will be backed by direct refinery supply to deliver competitive prices for UK motorists. The transaction will be funded through a combination of cash and a new £250 million senior debt facility. This is not the first major forecourt sale involving SGN Retail’s chief executive, who previously led the 2016 sale of MRH’s 450-site network to US private equity firm Lone Star Funds.