European Forecourt Retail Group

Sector: Consumer & Retail

European Forecourt Retail Group (formerly known as Delek Europe) is one of the largest independent fuel marketing and convenience retail operations in Europe. They are a major player in each of their markets, operating under strong brand names such as Texaco and BP.


Business Overview

  • 1,215 retail sites spread across the Benelux and France
  • Primarily distributed across highway and city centre locations
  • Premium fuel offering under BP, Texaco and ESSO brands
  • The growing non-fuel segment accounts for c.36% of gross margin

Investment Thesis

  • Comprehensive knowledge of the business due to prior investment
  • Steady demand for fuel as a predominantly non-discretionary product
  • Fuel margins have remained stable over time
  • Well-invested site network; highway concession renewals recently completed
  • Significant asset backing, low senior leverage and attractive relative yield