A fuel business which has operated on Tyneside for more than 50 years has been bought by a North Yorkshire company.
GB Fuels has been taken over by Oil NRG Ltd, based in Stokesley, for an undisclosed sum, forming an independently run fuel supply business with a presence in the North East.
GB Fuels, a division of the family-run Goodall Bates & Todd Limited, was set up in the 1960s and has operated from Gateshead since.
It has a strong customer base in Tyneside and Northumberland, including a major presence in rural areas.
Having acquired the business, Oil NRG, which works across County Durham, Teesside and North Yorkshire, has the capacity to distribute domestic, commercial and agricultural fuels across the whole region.
GB Lubricants, another division of the Goodall Bates and Todd Limited group, is unaffected by the deal, and, after a period of strong growth, further expansion is planned.
Tim Bates, managing director of Goodall Bates & Todd Limited, said: “We were established in 1877 as a lubricants blender and by selling the fuels division, it will enable us to focus on and reinvest the proceeds in what has always been our core business.
“The lubricants division has grown significantly and consistently over the last five years, delivering product on a nationwide basis and we plan to continue this growth.”
Oil NRG managing director Roger Peart said: “Our main focus is oil distribution; we are delighted we can now provide a higher level of service to the region’s customers, whilst the additional volume will mean we are more than able to match the buying power of our larger, national competitors in the area.”
The sale was handled by Newcastle-based law firm Sintons, and RMT Accountants and Business Advisors, also based in Newcastle
Solicitor Luke Phelan, from Sintons’ company and commercial department, said: “It has been a pleasure to work with Tim Bates and the team involved in this matter and I am confident that the transaction will enable GB Lubricants to focus its operation and continue to provide great services to its customers.”
Graham Brown, corporate finance manager at RMT: “We are extremely pleased to have been able to help Tim and his team achieve the outcome they were looking for on this project, and look forward to continuing to work with GB Lubricants in the years ahead.
“The availability of the GB Fuels business created a lot of interest from a range of potential purchasers, and we worked closely with the management team to identify the best available options, formulate the terms of the sale and achieve a positive outcome for everyone involved.”