Topaz Energy Group, Ireland’s largest fuel retailer, has been sold by owner Denis O’Brien to Canadian company Alimentation Couche-Tard, better known as Couche-Tard. The consideration was not disclosed.
The assets being sold include linked companies Resource Property Investment Fund plc and the recently-acquired Esso Ireland. The transaction is expected to close in Spring 2016, subject to the usual regulatory approvals and closing conditions.
Based in Quebec, Couche-Tard is one of the world’s leading convenience and fuel retail businesses, with 15,000 sites across its network in North America and rond the world. In Europe the company is active in Norway, Sweden, Denmark, Poland, the Baltics and Russia, with 2,220 stores in the region.
The company also sells stationary energy, marine fuel and chemicals. Couche-Tard operates key fuel terminals and fuel depots in six European countries, and including employees at Statoil branded franchise stations, the group employs about 19,000 people in its retail network, terminals and service offices across Europe.
Brian Hannasch, CEO of Couche-Tard (pictured below, left), stated: “In 2012 we declared that Statoil Fuel & Retail would be our platform for growth in Europe. This agreement to acquire Topaz’s network and assets, our second announcement in Europe this year following the Danish Shell deal, would allow us to add yet another high quality network to our operations.
In Association with
"Ireland has been on an extraordinary journey over the past decade. We have been looking at this market for several years. With the addition of Topaz, we would expand our geographic footprint into what, today, is one of Europe’s best performing economies.”
Cloche-Tard had turnover of $34.5bn in the year to end April 2015 and reported an operating profit of $1.3bn. Net profit for the year was $930m.
Topaz Network
The Topaz network has 464 service stations, 162 of which are company-owned. and a commercial fuels operation with over 30 depots. The business employs over 2,000 people across the island of Ireland.
Topaz chairman John Callaghan commented: “The last two years have been a period of phenomenal development and improvement for the company. We have established a well capitalised group of growing businesses which, with the recent amalgamation of Esso in Ireland, is the undoubted industry leader. We know Couche-Tard bring a new dimension to the industry in Ireland to the benefit of the economy, our customers and our staff.”
Topaz was formed by Neil O’Leary’s Ion Equity in 2005 to take over Shell’s filling stations in Ireland as well as the Irish operations of Statoil. O’Brien wrested control of Topaz from O’Leary by buying the company’s debts to Anglo Irish Bank from IBRC, reportedly at a 50% discount to the loans' par value.
O'Brien installed his cousin Emmet O’Neill (pictured below, right) as CEO of the business after O’Neill sold his Smiles Dental business. The company board also includes former Taoiseach Brian Cowen. In December 2014, Topaz added to its market heft by acquiring Esso’s filling stations in Ireland. Law firm LK Shields acted for Topaz in the sale process.
