Allegro buys New Zealand fuel retail business

It is the first acquisition from Allegro's fourth fund, which closed on AUD 750m (USD 521m) in May, beating a target of AUD 600m that was achieved on the first close one month after launch. The fund includes a sidecar to facilitate larger deals.

Fay Bou, a managing director at Allegro who became the firm's third partner in January, described Gull as a leading challenger brand that offers a compelling value proposition in a mature, essential energy market.

"Gull is a beloved brand by Kiwi motorists for its low-cost fuel offering and customer-first focus," he said in a statement. "Under Allegro ownership, we intend to build on Gull's strong market position and low cost to serve by investing in a range of growth initiatives and maintaining its commitment to best value fuel."

Gull was founded in Australia in the 1970s and re-headquartered in 1998 to New Zealand, where it currently operates 115 mostly unmanned service stations. Its fuel volumes have grown about 11% a year over the past 15 years. Annual revenue is currently NZD 1bn.

The company claims to be the only independent operator with vertically integrated supply capability. This includes an import terminal that sells around 500 megalitres of fuel annually, representing about 8% market share of New Zealand's liquid fuel volumes.

In addition to commercial petrol stations, Gull operates an industrial and marine fuel distribution service that includes a mini-tanker capable of bunkering large vessels such as superyachts. There are also a range of services for fleet operators, including non-fuel-related support such as repairs and servicing.

Allegro said it would explore opportunities to build environmental, social, and governance (ESG) capabilities to help Gull navigate changes in the fuel industry. The business will continue to be run by its existing management team.

The seller is Australian and New Zealand-listed Ampol, formerly Australian Petroleum and Caltex Australia, which has committed to a five-year fuel supply agreement with Gull as requested by Allegro. This is subject to annual price reviews and termination rights.

Ampol was required by the competition regulator to sell Gull after acquiring petrol company Z Energy last year for NZD 2bn, and it will use the proceeds to pay down debt related to that deal.

Allegro has acquired 26 businesses across Australasia since 2004 and currently has AUD 4bn in assets under management. It was active in New Zealand transportation and logistics last year with the carve-out of Toll Global Express from Toll Holdings, having secured AUD 500m in funding for the transaction.

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• Topics
• Australasia
• Industrials
• Infrastructure
• Support services
• Buyouts
• New Zealand
• Allegro Funds
• Transportation
• Logistics
• automobiles