First Reserve, the private equity owner of Refuel Operating Co. LLC, is exploring strategic options including a potential sale that could value the U.S. convenience-store operator at more than $1.5 billion including debt, people familiar with the matter told Reuters on Friday. First Reserve is in talks with investment bankers to launch a sale in the first half of 2025, the sources said, requesting anonymity as the discussions are confidential.
Refuel could command a valuation equivalent to about 13 times its core annual earnings of approximately $120 million, the sources said, based on comparable transactions in the sector.
The sources cautioned a deal is not guaranteed and First Reserve may keep the business, the news agency said.
First Reserve and Refuel did not immediately respond to a request for comment to CSP.
Refuel Operating Co. is No. 36 on CSP's 2024 Top 202 ranking of convenience-store chains by store count.
First Reserve, Stamford, Conn., formed Refuel Operating Co. through the acquisition of Charleston, South Carolina-based Refuel Inc. and its six c-stores in early 2019. Refuel—which now owns approximately 230 convenience stores and gas stations in South Carolina, North Carolina, Mississippi, Arkansas and Texas—grew quickly through multiple acquisitions:
May 2019: West Oil Inc., Hartsville, South Carolina, with 25 c-stores.
June 2019: Bishopville Petroleum Co. Inc., Bishopville, South Carolina, with two c-stores.
January 2020: Turtle Market, Myrtle Beach, South Carolina, with two c-stores and two locations under construction.
April 2020: Double Quick Inc., Indianola, Mississippi, with 48 c-stores and five standalone quick-service restaurants (QSRs).
Late 2020: Holmes Oil Inc., Chapel Hill, North Carolina, including the 26-unit Cruizers c-store chain.
August 2021: Albemarle Oil Co., Albemarle, North Carolina, with 28 ALCO c-stores and eight Dairy Queen QSRs
September 2021: Action Fuels LP, San Antonio, with nine Buck’s c-stores.
In January 2022, Refuel received a $511 million capital infusion to pursue acquisitions. Sixpoint Partners, an investment bank focused on the middle-market private equity industry, closed the First Reserve Refuel Fund LP, a single-asset continuation vehicle managed by First Reserve, which retained Sixpoint to serve as global exclusive placement agent. The First Reserve Refuel Fund acquired Refuel, a “buy-and-build” platform, from a previous First Reserve fund.
Since then, other acquisitions have included:
June 2022: Certain assets of Embark Energy LLC, Austin, Texas, with 11 company-owned and -operated Fast Break c-stores and four company-owned, dealer-operated locations.
August 2022: The assets of Premier Stores Inc., Greensboro, North Carolina, with six GreatStops c-stores.
November 2022: Eagles Enterprise LLC, Raleigh, North Carolina, with 13 Eagles c-stores.
Late 2022: The assets of The Whalen Corp., Raleigh, North Carolina, with three c-stores.
May 2023: Hop-In, San Antonio, with seven c-stores.
May 2023: Laneco Express, Yemassee, South Carolina, with one c-store.
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