State Oil Group has completed the acquisition of Harvest Energy and Harvest Energy Aviation to significantly increase its share of the UK’s road fuel provision, in a deal part funded by Clydesdale Bank.
Already one of the UK’s leading independent suppliers of automotive and industrial fuels, the acquisition will give State Oil more than 100 fuel stations and a 15% share of the UK’s road fuel demand. Clydesdale Bank, alongside three other lenders, provided 25% of the total funding package to support the deal.
Clydesdale Bank’s involvement was led by Brendan Brien, Senior Director within the Specialist and Acquisition Finance team in London, in conjunction with Angus Rooms, Business Development Manager within the Invoice Finance team.
The enlarged group will be headquartered at State Oil’s existing site in Weybridge, and the activities of the merged companies will continue to operate under their existing brands. Fuel stations will remain branded as Harvest Energy, and all other businesses, including terminal management and cargo trading, will operate as part of State Oil’s Prax Petroleum brand.
Prax Petroleum is a significant importer and distributor of fuel products in the South East of England, with its continued growth largely attributable to flexible pricing and the reliable provision of high quality products and service. The company specialises in the supply of diesel, bio-diesels, kerosene, gas oil, and has recently begun importing gasoline to meet demand from existing and potential customers.
Adding Harvest Energy’s portfolio of fuel stations will allow the company to work towards its goal of becoming the market leader in the provision of road fuels to independent retailers.
Sanjeev Kumar, Managing Director of State Oil, said: “These acquisitions bring together strong and complementary companies that will create a major UK downstream business with a strong brand which will benefit our customers and allow us to compete on a truly national scale.
I am looking forward to leading the enhanced group and would like to take this opportunity to thank our banks and professional advisors for their energy and tenacity which ensured the successful consummation of this transaction”.
Brendan Brien, Senior Director within Specialist and Acquisition Finance, said: “We have worked with the team at State Oil since early 2014, and are pleased to have supported the company in this significant expansion. There is a clear strategy for ongoing growth, and the acquisition will play a key role in helping it achieve its business objectives”.