The acquisition is in line with NWF Group’s strategy to grow its fuels distribution business, which represents the UK’s third largest operation, through consolidation.
Northern Energy Oil Ltd is a 42 million litre distributor with a predominantly domestic customer base serviced from five sites in North Yorkshire, Northumbria and Lincolnshire. The acquisition increases Cheshire-based NWF Group’s presence in the North East of England, where it is currently underrepresented, and increases its fuel volumes by around 6%.
Chief executive Chris Belsham said: “We are delighted to announce the acquisition of Northern, which represents an excellent example of NWF’s strategy at play to consolidate the highly fragmented fuels distribution market.
“This acquisition, our first since Geoff Boorman in 2023, demonstrates our intent to pursue attractive, earnings-accretive transactions, consistent with our strong and established track record.”
A secure future
The sale follows a strategic decision by Northern Energy to focus on continuing to build its growing LPG business while enabling its oil operations to benefit from being part of a larger organisation.
Howard Illingworth, Northern Energy’s chairman said: “We’re proud to have been serving businesses and households across the region for almost 100 years, having started by supplying milk from local farms before expanding into agricultural fuels, heating oil and, most recently, LPG.
“Selling our oil business to a larger player who is well-placed to compete in what is a changing oil market is the best way to secure its future over the long term.”
More than 30 people employed by the distributor will transfer to NWF Fuels, which intends to operate from a new base in the locality. No jobs will be lost as a result of the sale, and the business will continue to trade under the Northern Energy name in the medium term.
Northern Energy reassured its customers that services would not be impacted and that NWF Fuels will continue to run the business as it currently operates, with the same people providing the same service as they do today.
Howard continued: “In NWF Fuels we have found a buyer who understands the business, is committed to investing in its development, and shares our passion for excellent customer service.
“They clearly see the value in a great business with fantastic people and loyal customers and we are confident Northern Energy Oil will continue to thrive under their ownership.
“We’ve been very successful in growing our LPG business over the past 10 years and the sale of Northern Energy Oil means we’ll now be investing 100 per cent of our energy, focus and resources into building it further.”
Ongoing pipeline
Welcoming “our new Northern colleagues to the group” Chris confirmed that further deals are very much on the table for NWF Group saying: “Our pipeline of potential fuels acquisitions remains active, supported by our robust financial position.”
Image provided by Northern Energy