The long-anticipated sale of the 85 Prax company-owned forecourts has completed with EG On The Move beating off competition from multiple other major players.
The acquisition expands the Top 50 Indie’s national network to around 285 sites, and for the first time will see it own and run commission-operated forecourts.
It says that it will be “working closely with those running the sites to enhance site performance, improve the customer experience, and unlock long-term growth opportunities”.
With many competitors looking to expand their estate, there has been plenty interest in the sites since the Prax oil refinery went into administration last summer. Essar, and Asda are believed to have been among those involved in final negotiations with the administrators.
The retail part of the Prax business, responsible for the forecourts, was not subject to insolvency, but industry insiders say the petrol stations are in need of investment.
The deal concludes a year of uncertainty, with Harvest Energy and Total Energies dealers supplied by the now defunct Lindsey refinery earlier released from their contracts after a lengthy process.
EG On The Move’s chief executive, Zuber Issa CBE says: “Our business is built on strong partnerships with not only retail brand partners, but now independent commission operators.
“We are delighted to welcome the Prax network into our UK site portfolio. We look forward to working alongside each operator to build on the strengths of their businesses, helping make every site more effective, more competitive, and even more attractive to customers.”
EG On The Move says it will work “collaboratively” with the commission operators “to invest in motorist welfare services, expanding foodservice offers, exploring grocery and merchandise ranges, and introducing fast electric vehicle charging and car wash solutions, where appropriate”.
It adds. “By combining local entrepreneurial expertise with the scale, experience, and support of EG On The Move, the aim is to create sustainable growth for operators while delivering an even better experience for customers across the network.”
It says that it is grateful to professional advisers; Cleary Gottlieb Steen, Hamilton LLP, PWC and the support from banking partners to help complete the acquisition.
Ian Woodcock, managing director of Prax Retail, says the deal “marks an important milestone for the business and the many commission operators and employees who have contributed to its success”.
He adds: “We are proud of the network we have built and the strong customer relationships we have developed across communities throughout the UK.
“Throughout the process, our priority has been to achieve an outcome that provides continuity for commission operators, employees and customers while creating opportunities for future growth. We believe EG On The Move is well placed to take the business forward, and we thank everyone who has supported the network over the years for their dedication and commitment.”
