First Reserve, the private equity firm that owns Refuel, is exploring strategic options, including a potential sale that could value the US convenience-store operator at over $1.5bn, including debt, according to a report by Reuters.
The report cites unnamed sources familiar with the situation as revealing that First Reserve, which acquired Refuel in 2019, is in discussions with investment bankers to initiate a sale process in the first half of 2025.
The move comes amid a wave of consolidation in the convenience-store industry, as operators seek to expand their geographic footprints despite inflation and slowing sector growth impacting consumer spending.
Potential buyers could include other convenience-store operators and private equity firms. Based on comparable recent transactions, Refuel may fetch a valuation of around 13 times its core annual earnings, estimated at $120m, although there is no guarantee that a sale will progress and First Reserve could opt to retain ownership.
Neither First Reserve nor Refuel have commented on the potential sale.
Headquartered in Charleston, South Carolina, Refuel operates around 230 convenience stores and gas stations, primarily in North Carolina, South Carolina, and other southern states, including Mississippi, Arkansas, and Texas. Under First Reserve’s ownership, Refuel has expanded aggressively through acquisitions, adding family-owned stores and smaller operators to its portfolio.
In January 2022, First Reserve transitioned its Refuel investment into a continuation fund, enabling an extended investment period and attracting new investors.
