Trafigura subsidiary buys Ausfuel from Archer Capital

Puma is taking full ownership of Ausfuel, buying out minority shareholders in addition to Archer. Through the addition of Ausfuel - which owns the Gull, Choice and Peak service stations - to its existing portfolio, Puma will become Australia's largest independent fuel retailer.

The Trafigura subsidiary made its first investment in the country only a matter of weeks ago, paying approximately $200 million for Neumann Petroleum. Neumann owned 120 service stations in Queensland and New South Wales. The Ausfuel acquisition brings another 110 retail sites and 11 depots, with coverage extending to Western Australia, Northern Territory and South Australia.

"We have been successful in building this business from selling 300 million liter per annum to more than 1.2 billion liter per annum in less than three years, and in the process have significantly improved its performance, revenues and profitability," Peter Gold, managing director at Archer, said in a statement. "We are delighted to be selling to Puma Energy who share a similar vision and can take it to the next level."

Ausfuel makes for an interesting case study in corporate development through partnership with private equity investors. It began life 30 years ago as a family-owned business called Australian Fuel Distributors that owned a single BP depot. From there, the company expanded its distribution network in Northern Australia.

CHAMP Ventures assumed ownership in 2006, with the David family retaining a minority interest. The private equity firm merged Australian Fuel Distributors with Bulktrans to form Ausfuel. Once the business reached a certain size, larger investors became interested and CHAMP sold to Archer, achieving a 2.5x money multiple. The original owners, under CEO Brooke David, retained their interest.

"Ausfuel is a family business at its core and we are confident that Puma Energy understands how to take our business to the next level, whilst ensuring the business remains true to its roots," David said. "Puma Energy's record in the market demonstrates it is committed to developing its staff, growing its business and maintaining local management and culture, and this is what Ausfuel is looking for."

Based in Singapore, Puma is also active in Northeast Europe, the Middle East, Africa, Latin America and the Caribbean. Its Asia presence includes Indonesia, Vietnam, Singapore and Malaysia, as well as Australia.

Morgan Stanley advised Archer on the transaction, while RFC Ambrion worked with Puma.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Exits
• Buyouts
• Australasia
• Commodities
• energy
• Archer Capital
• Exit
• Trade sale
• Australia