Consortium to take over Shell's Irish business

Saturday July 16, 2005 05:03

by irish times observer - stop shell oil

put the pressure on these guys!!!!

(from the Irish times)
Una McCaffrey

A consortium fronted by former Emo Oil managing director Danny Murphy has won the takeover battle for Shell Oil's Irish retail and commercial business.

The value of the deal agreed with Royal Dutch/Shell has not been disclosed but it is thought to have approached at least €200 million.

Four executives from corporate finance and private equity firm Ion Equity have joined with Mr Murphy to secure the high-profile takeover.

The consortium will buy Irish Shell through a new company called Topaz Distribution and Logistics, of which Mr Murphy will become chief executive.

The Ion Equity executives involved are: Neil O'Leary, Joe Devine, Ulric Kenny, Patrick Hogan and David Fewer.

Topaz has been backed by Anglo Irish Bank.

The purchase agreement brings to an end a lengthy auction process at Shell, which decided to sell the business almost a year ago. Completion of the sale is expected before the end of 2005.

Irish Shell is a substantial business, with turnover almost touching the €1 billion mark last year. It operates on both sides of the border and is active in oil, gas, diesel, kerosene, fuel oil and lubricants in all sectors of the energy market.

Topaz will be allowed to keep the Shell name and Shell will continue to supply fuel to the company. Irish Shell owns six oil importation depots at ports, including Dublin, Cork and Limerick, and has 35 local distribution depots across the country.

It also owns 55 retail service stations and supplies 105 independently-owned service stations.

A number of these service stations are located on valuable properties, such as sites at Stillorgan, Blackrock, Glasnevin and Dalkey in the Dublin area. Market observers believe Topaz could raise as much as €150 million by selling off selected properties.

Ion Equity chief executive Neil O'Leary, who will become chairman of the new company, said yesterday that the deal represented a "unique opportunity to acquire a premium business".

He said the company had "huge potential and a very strong and difficult-to-replicate infrastructure".

"We are confident that this business will continue as a profitable and growing enterprise well into the future."

Mr Murray said Topaz would work with the operation's 153 management and staff "to bring the business forward". He emphasised the efficiency benefits that Topaz would be able to draw by bringing the business back to a "country-specific" structure.

Dr Frank Bergin, director of Shell in Ireland, said the agreement made good sense for the company.

"Our priority now is to work with our staff, customers and other stakeholders to ensure a smooth transition and jointly grow the business", said Dr Bergin.

Topaz is thought to have beaten off several rounds of hefty competition in the takeover process. Other bidders are believed to have included David Courtney of property consultants, Spain Courtney Doyle and Galway-based John Sweeney of Sweeney Oil.

save preference

Comments (1 of 1)

Follow The Money Blog Is Here

by *

Sun Jul 17, 2005 22:56

Shell In Mayo: Rossport 5 Jailed
Follow The Money Blog

"The" only answer that makes any logical sense to the qui bono question to me (and our government are nothing if not logical when it comes to asset stripping and putting interests of corporate / business elites above public interest) is that local economic elites will benefit further down the pipelines. The state will get no royalties but through these sweetheart deals the irish economic elite will extract their own royalties literally at the pumps."

Upcoming Events

New Events

Other Press

User Preferences

Feeds

Blog Feeds

Anti-Empire

The Saker

Lockdown Skeptics

Voltaire Network

Consortium to take over Shell's Irish business

Comments (1 of 1)