Styrkás hf., through its subsidiary Skeljungur ehf., has signed a purchase agreement providing for the acquisition of all share capital in Gallon ehf. The seller is Skel fjárfestingafélag hf.
Gallon handles reception, storage and fuel sale from the company’s supply terminals, where fuel is delivered directly onboard vessels and to fuel trucks. The company operates storage and tank facilities at six locations along the coast and provides storage of aviation fuel at seven airports. Its supply terminal in Örfirisey has 14 storage tanks and plays a key role in the company’s operations. The company employs six people. Gallon also owns a 25% stake in EBK ehf., which operates a supply terminal at Keflavík International Airport, and this stake is included in the transaction. The total enterprise value of Gallon in the transaction was ISK 2.9 billion.
Styrkás is a leading service company in the corporate market, with four core areas of operation: energy and chemicals; equipment and machinery; asset management and leasing; and environmental and industrial services. Subsidiaries of Styrkás are Skeljungur, Klettur, Stólpi and Hreinsitækni. The purpose of the acquisition of Gallon is to strengthen Styrkás’s core business in energy and chemicals.
Advisors to the buyer in the transaction are Landsbankinn Corporate Finance and Logos Legal Services. Advisers to the seller are Arma Advisory and BBA // Fjeldco.
The acquisition is subject to approval by the Icelandic Competition Authority and the approval of a shareholders’ meeting of Styrkás.
