(Alliance News) - NWF Group PLC on Monday said it has acquired 100% of the shares in Northern Energy Oil Ltd.
The Cheshire, England-based fuel, food and feed distributor will pay GBP8.3 million in total for fuel distributor Northern, mainly comprising GBP7.3 million in cash from its existing resources.
The remaining GBP1.0 million will be held on retention to be released in three tranches, "subject to the vendors complying with certain post-completion conditions". NWF expects the conditions to be met within the next 18 months.
The company said it expects Northern to be immediately earnings accretive, and to benefit from margin expansion once fully integrated into its existing infrastructure.
NWF said the acquisition increases its "currently underrepresented" presence in the north-east of England, and will increase its total fuel volumes by around 6% on a pro forma basis.
"This [deal] is in line with the group's strategy to grow its fuels distribution business through consolidation, which represents the third largest operation in the United Kingdom," NWF 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," commented Chief Executive Officer Chris Belsham. "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.
"Our pipeline of potential fuels acquisitions remains active, supported by our robust financial position."
Shares in NWF traded 0.3% higher at 174.97 pence on Monday afternoon in London.
By Emma Curzon, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2025 Alliance News Ltd. All Rights Reserved.