Corrib Oil announced today (Monday 20 September) that it had entered an agreement to acquire H2 Group.
While subject to approval by the competition regulator, this deal will see the service station and oil distribution provider acquire 13 high quality retail sites based across the south and east of Ireland, expanding the Corrib Retail footprint to 33 stores in total.
The new sites are located in Listowel, Co. Kerry; Kildare; Limerick; Tipperary; Dublin; Laois; Offaly and Cork.
Commenting on the deal, Eugene Dalton, chief executive officer of Corrib Oil, said that the acquisition of H2 Group is a significant step in the company’s growth strategy, presenting an opportunity for both the retail and distribution businesses to develop further.
"In H2 Group we see great potential and have acquired a network of strong and profitable businesses, led by an expert team," he said. "Adding the company’s leading and strategically positioned retail sites to our portfolio expands our presence and our retail footprint across the country, with 54 sites in 16 counties."
Corrib Oil, founded in Claremorris in 1987, operates two distinct divisions, Corrib Retail and Corrib Distribution.
Corrib Retail currently operates 20 convenience stores with forecourts; while Corrib Distribution, a leading distributor of heating oils and fuel, operates through 21 depots across 14 counties.
Having maintained a 22-year relationship with BWG Foods, all Corrib Retail convenience stores are branded as Spar, while all forecourts are branded Circle K or Texaco, with instore partners including Insomnia and Chopped.
The Corrib Distribution business supplies home heating oil, road fuels and lubricants from 21 distribution sites, operating a fleet of 78 road trucks and 69 service vehicles across the country.
On conclusion of the acquisition deal, Corrib will operate across 54 sites in 16 counties in total - 20 Corrib service stations, 21 oil distribution depots and 13 H2 Group retail sites.
Currently employing 700 people, the addition of H2 Group to Corrib Oil will bring total employee numbers to over 1,000 people.
Founded in 2004, the H2 Group operates 13 retail sites, 11 service stations and one convenience store, with the thirteenth to open in Kenmare, Co. Kerry next month.
The business operates its service stations under the Texaco and Top brands, while all stores are Spar branded. Its store partners include Insomnia, Apache and Subway.
Led by managing director Sean Heaphy, H2 Group currently employs 300 people. Heaphy will join Corrib Oil as a director.
"Our expanded business will have the scale, breadth and capabilities to compete more effectively and offer an enhanced and expanded service to more customers, through our leading brand partners and our home heating and oil services," Dalton added.
Sean Heaphy, managing director of H2 Group, said that the acquisition was a positive development and a great opportunity for both businesses.
"The merger of both businesses means we’re creating a larger retail group and offering in Ireland and, together with our partner network, we can capitalise on this scale for our employees, suppliers and partners," he said.
"The acquisition is testament to the strong business that our team has built over the past 17 years, and I look forward to working with Eugene and team in further developing the Corrib Oil business," Heaphy concluded.
In planning for over nine months, the deal was managed by Capnua Corporate Finance.
Concluding, Mr Dalton said that the company ‘continues to explore opportunities for growth.’