Strategic Sale on Horizon: Refuel's Potential $1.5 Billion Valuation

Private-equity owner First Reserve is considering selling U.S. convenience-store operator Refuel, which could be valued over $1.5 billion including debt. The sale reflects industry consolidation amid slowing growth and inflation. Refuel, operating primarily in the Southeastern U.S., has grown through acquisitions since its 2019 purchase by First Reserve.


Devdiscourse News Desk | Updated: 09-11-2024 01:37 IST | Created: 09-11-2024 01:37 IST
Strategic Sale on Horizon: Refuel's Potential $1.5 Billion Valuation

The private-equity owner of Refuel is considering strategic options, including a potential sale that could see the U.S. convenience-store operator valued at over $1.5 billion, factoring in its debt load, sources close to the matter revealed on Friday.

This development is part of a broader wave of consolidation in the convenience-store sector, as operators look to expand their geographical footprint and combat slowing growth. Inflationary pressures have forced consumers to tighten spending on essential goods.

First Reserve, which acquired Refuel in 2019, is reportedly engaged in discussions with investment bankers to initiate a sale process by the first half of 2025. Potential buyers include other store operators and buyout firms. Based on comparable sector transactions, Refuel's valuation could reach 13 times its annual earnings of approximately $120 million. However, there's no guarantee a deal will occur; First Reserve may decide to retain the business.

(With inputs from agencies.)

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