North east businessman David Wood has completed the acquisition of Peterhead-based fuel and lubricants distributor Caley Oils in a deal which is expected to lead to the creation of around 15 new jobs.
Mr Wood already owns competitor Northern Oils and his company David Wood Investments acquired Caley Oils from Caley Investments Ltd, the Peterhead-based fishing company operating throughout the UK.
Caley Oils has depots at Peterhead, Fraserburgh, Ullapool and North Shields (Newcastle) representing a good geographic fit with the existing Northern Oils sites to enhance nationwide coverage. In total, the combined companies will have 12 depots reaching from the Shetland Islands to the south of England with the group headquarters located at Lintmill, near Cullen.
The deal gives them a significant fuel distribution infrastructure upon which to build moving forward, with the merged assets of the two companies including a 54-strong fleet of delivery vehicles and storage capacity amounting to millions of litres. It is believed turnover in 2013 will be in the region of £40 million.
Commenting on the acquisition, Mr Wood said that his group of companies continued to look at means by which to improve their offering in the fuel and lubricants market and that the Caley deal gave them additional infrastructure to improve their logistical capability. He said “This will allow us to develop the companies to form a national single source for both fuel and lubricants. In particular, it will allow us to strengthen our supply capability in the marine sector where Caley have always been a strong player.”
A statement from the directors of Caley Investments Ltd added “We recognised that the core of our business is fish, so following a strategic review, took the decision to sell Caley Oils Ltd.
“We are delighted that David Wood has acquired the business and take this opportunity to wish him every success in his new venture.”