Following the takeover of Topaz by Canadian firm Couche-Tard, and last week’s acquisition of Sirio’s retail operations by Top Oil, Davy Stockbrokers believes this “heightened level of activity demonstrates that both forecourt companies and private equity firms continue to see value in the sector.”
Davy analyst Robert Stokes also pointed to the takeover of MRH, the biggest independent service station owner and operator in the UK, by US private equity firm Lone Star, noting it was the “third time in recent months that private equity funds have invested in leading forecourt companies in the UK.”
Applegreen, too, has made inroads into the UK forecourt market in recent years, and Stokes believes there is good value to be had from such ventures.
“The UK forecourt market is attractive for several reasons: growing consumer demand for the convenience food offering, the continued retrenchment of the oil majors in the UK and a record 34 million vehicles now on the road. And all of this in a time when falling oil prices are enhancing the affordability of the retail offering for the consumer.”
© 2016 - Checkout Magazine by Stephen Wynne-Jones
