Fuel delivery giants join forces
Drymen-headquartered fuel distribution firm James D Bilsland Ltd. has acquired Kilmarnockbased Andrew Gray and Co Fuels Ltd. for £2.8million.
The purchase has been supported by a £1.6 m term loan from the Bank of Scotland.
The family business was formed in 1964, operating just one lorry delivering tractor diesel and vaporising oil to local farmers – now it turns over £16m and employs 30 people.
Andrew Gray and Co Fuels was established more than 80 years ago and is a leading distributor and supplier of fuel products. The business employs 19 people.
The two companies will operate 36 lorries from eight depots, located in Oban, Rothesay, Drymen, Kilmarnock, Douglas and Carlisle, employing 49 people.
The combined turnover will be more than £25m and the firms will retain separate brand names following the acquisition.
Last year, James D Bilsland expanded its operation into renewable energy, with the support of a £600,000 term loan from the Bank of Scotland.
The business now produces and supplies wood pellets and wood chips.
The funds also supported the installation of a CHP biomass unit at the firm’s head office, which is expected to save the business £2m in electricity and heating over the next 20 years.
Managing director James Bilsland said:“We’ve known Andrew Gray and Co for many years and there is a strong synergy between the two businesses. We’re both family businesses and we share many of the same values.
“The acquisition makes sense on many levels, but also enables us to cover additional geographies, taking us into Ayrshire including the Isle of Arran.
“Andrew Gray and Co has an outstanding reputation. We’ll continue to deliver the same high standard of customer service and build on that reputation.”
He added:“We’ve worked with Bank of Scotland since 2016, when it supported our expansion into the biomass market.
“The team has always been able to provide the tailored support we’ve needed, providing innovative finance solutions such as asset finance, that help us free up cashflow and enable us to invest in growing our business.” Alasdair Swan, relationship director for Bank of Scotland, said: “Both businesses are outstanding operators in the oil and gas industry.
“The acquisition will support the management team’s growth ambitions and firmly cement James D Bilsland’s market leading position.”