Brulines Group announces the acquisition of Retail & Forecourt Solutions

The acquisition is to be satisfied wholly in cash, and consists of an initial earn out of 4 times EBITDA to 31 July 2010, £1,200,000 of which is payable on completion.  This is followed by a further consideration of 3.5 times EBITDA for the year ending 31 July 2011, less any consideration already paid. Management accounts for RFS to 31 July 2009 show that the Company recorded an EBITDA of £212,000 on a turnover of £774,000.

RFS was established in 1995 by Managing Director and majority shareholder Michael Hollier following a senior management career in the motorway services forecourt industry. On completion, Francis Hollier, currently RFS Technical Director, will assume the role of Managing Director of RFS, reporting to Phil Maud, Managing Director of Brulines’ Forecourt Service Division, whilst Michael Hollier will act as a consultant to RFS.

In 2000, RFS became the first company in the UK to be accredited as pump “verifiers”, although they were not able to undertake adjustments; this was the province of Trading Standards officers within the UK local council system. The step change in terms of business model for RFS came with effect from 1 January 2009, when the Weights & Measures Reform Act enabled the Company to carry out adjustments to pumps without the need for Trading Standards officers to be present.

Brulines’ forecourt strategy aims to deliver a market leading, integrated toolbox of data management, analysis, and associated products and services that allow forecourt operators to optimise return on investment from their fuel stocks and the assets designed to store, control and issue fuel. This strategy has seen the acquisition of Edensure, a wet stock management business, in October 2008, the appointment of Maud as Managing Director of the Forecourt Division in September 2009 from Morrisons Supermarkets, where he had previously been Director of Petrol Forecourts for eight years, and the acquisition of ELS Ltd the gauging systems, tank lining, LPG and forecourt services business in April 2010.

Phil Maud, Managing Director of Brulines’ Petrol Forecourt Services Division said: “This acquisition sees the Group continuing to refine our strategy and offering for the forecourt industry.  Over-dispensing pumps can cost forecourt retailers thousands of pounds a year in fuel given away.  Our state-of-the-art Edensure wet stock loss analysis is able to identify this over-dispensing quickly and accurately, and now with RFS as part of our Group we can offer forecourt operators an integrated and responsive solution of analysis, identification, and on-site correction. 

Commenting on the proposed acquisition and appointment, James Dickson, Chief Executive of Brulines, highlighted:  “This acquisition which will be earnings enhancing from the outset, is another important step in developing a market leading integrated solution for forecourt operators and underlines our intention to replicate in the forecourt market our success in the leisure sector. The opportunities for this expanded offering are significant, and we look forward to updating shareholders on our progress in the forecourt services market.”