Recovery Team Scaling up at RMT Accountants
March 11, 2019
Gateshead-based GB Fuels has been bought by North Yorkshire’s Oil NRG Ltd to form a new independent fuel supply business.
GB Fuels has operated on Tyneside for over 50 years and Oil NRG works across County Durham, Teesside and North Yorkshire.
The combined businesses now have the capacity to distribute domestic commercial and agricultural fuels across the whole region.
The GB Lubricants division of the group is unaffected by the deal, and after a period of strong growth of the business, further expansion is now planned. The lubricants operation was established over 100 years ago and is now the focus of further growth for the Goodall Bates & Todd group.
Tim Bates, managing director of Goodall Bates & Todd Limited, said that after trading for over 50 years, the sale of the fuels division is a hugely significant step for the business.
He said: “We were established in 1877 as a lubricants blender and by selling the fuels division, it will enable us to focus on and reinvest the proceeds in what has always been our core business.
“The lubricants division has grown significantly and consistently over the last five years, delivering product on a nationwide basis and we plan to continue this growth.“
Oil NRG was established in 2006 by Nigel and Mark Jones and Derek Noble to provide a locally-based service for local people, and said it is pleased to be able to expand its regional presence further by welcoming GB Fuels to its portfolio.
Roger Peart, managing director of Oil NRG Ltd, said: “Our main focus is oil distribution; we are delighted we can now provide a higher level of service to the region’s customers, whilst the additional volume will mean we are more than able to match the buying power of our larger, national competitors in the area.“
The sale of GB Fuels to Oil NRG was handled by Newcastle-based law firm Sintons, and RMT Accountants and Business Advisors in Newcastle.
Luke Phelan, Solicitor in Sintons’ Company and Commercial department, who oversaw the deal, said: “It has been a pleasure to work with Tim Bates and the team involved in this matter and I am confident that the transaction will enable GB Lubricants to focus its operation and continue to provide great services to its customers. Sintons were pleased to assist in this matter, which adds to a busy year for the firm in transactional matters.“
Graham Brown, corporate finance manager at RMT, who advised GB Fuels on the deal, said: “We are extremely pleased to have been able to help Tim and his team achieve the outcome they were looking for on this project, and look forward to continuing to work with GB Lubricants in the years ahead.
“The availability of the GB Fuels business created a lot of interest from a range of potential purchasers, and we worked closely with the management team to identify the best available options, formulate the terms of the sale and achieve a positive outcome for everyone involved.
“Oil NRG provides an extremely good strategic fit for the GB Fuels business, and this disposal will enable Tim and his team to concentrate on their strategic aims for developing the Lubricants side of GB’s operations.“