Irish Shell snapped up by Ion Equity

SHELL’S network of Irish petrol stations and fuel distributors has been snapped up by venture capital group Ion Equity.

Ion said yesterday it had struck a deal with Shell to buy its retail and commercial businesses on both sides of the border, which include 55 petrol stations, 35 distribution depots and six oil importing facilities in Dublin, Cork, Limerick, Galway, Derry and Greenore in Louth.

The value of the deal, which was agreed after Shell recently decided to exit the business for strategic reasons, was not disclosed.

The business, believed to have a turnover of around €1 billion a year, sells oil, gas and other fuels and lubricants using its own network and also supplies a further 105 independently- owned petrol stations. Topaz Distribution and Logistics, a special purpose company set up by Ion to handle the deal, will take over Shell’s interest.

The petrol stations will continue to trade under the Shell brand.

The company will be headed by Danny Murray, who has a strong track record in the petrol retail business after a spell as managing director of Emo Oil and will take up the role of chief executive.

Ion Equity managing director Neil O’Leary will chair Topaz on an interim basis.

Mr O’Leary said the deal was “a fairly unusual opportunity” to buy a well-established distribution business.

“The opportunity to acquire the retail petrol and commercial fuels business of Shell in Ireland represents a unique opportunity to acquire a premium business with huge potential and difficult-to-replicate infrastructure.”

Mr O’Leary also said Ion had beaten off competition from “a large number” of interested parties and was the group’s first venture into a business with an established infrastructure base. He dismissed concerns that the petrol stations would suffer from their link to the Shell brand, in light of the ongoing controversy regarding Shell’s proposed oil pipeline in Co Mayo.

Ion’s swoop follows recent successful investments in student travel group USIT, broadband infrastructure provider E-Net and property business Vector.