Interpath has advised Inspirit Capital, a specialist investor in complex corporate carve-outs, on its acquisition of Watson Fuels, one of the UK’s leading fuel distribution businesses, from World Kinect Corporation, a Fortune 100 leader in the global energy industry.
Founded nearly 70 years ago, Watson Fuels has a long-established reputation as a trusted provider of fuel, lubricants, and other energy solutions to a diverse customer base, including homeowners, small businesses, large corporates, and the agricultural sector. With a nationwide distribution network and revenues in excess of £1.5 billion, the company is recognised for its reliability, customer service, and innovation in fuel logistics.
Inspirit Capital is a London-based investment firm that specialises in acquiring businesses that are no longer core to their parent company’s strategic objectives and require a different ownership structure to achieve their full potential.
To support the transaction, Interpath secured a £75m asset-based lending facility with specialist business lender Secure Trust Bank. A multidisciplinary team from Interpath provided debt and tax advice to Inspirit. The facility was delivered by Debt Advisory Managing Director Chris Hall, Director Ben Smith and supported by Sam Hibbert and Niamh Valentine.
Ben Smith, Director at Interpath, who co-led the engagement, said: “Inspirit provides an exceptional platform for Watson Fuels to invest in its nationwide network and achieve its independent ambitions. The carve-out is fuelled by a capital-efficient and tailored facility with Secure Trust that has the flexibility to support Watson Fuel’s growth ambitions well into the future. We wish them the best as they step forward into this new era for the business.”
Paul Youens, Investment Director at Inspirit Capital, said: "Watson Fuels is a well-established business with a strong market presence and a trusted brand. We are delighted to be supporting the company’s next phase of growth as an independent business. This transaction aligns with Inspirit’s expertise in complex carve-outs, and we look forward to working closely with the Watson Fuels team to leverage the company’s strengths and capitalise on emerging opportunities in the sector. I’d also like to thank the team at Interpath for their great work and support on the transaction.”
James Ambrose, Regional Sales Director at Secure Trust Bank Commercial Finance, said: "It’s been great working alongside Inspirit Capital and Interpath on this acquisition. We’re committed to building trusted partnerships with private equity to unlock value across the UK’s mid-market and this transaction is a great example of that in action. The facility is also our largest to date and has been carefully structured to support Inspirit’s acquisition of Watson Fuels, providing it with the headroom needed for significant future growth. We’re proud to support this exciting new chapter for such a well-established and trusted brand."
Matt Whitton, CEO at Watson Fuels, added: “This marks an exciting new chapter for Watson Fuels. We have a long history of delivering exceptional service to our customers, and with the support of Inspirit Capital, we are well-positioned to drive future growth and innovation. We look forward to continuing to serve our customers with the same dedication and reliability that has defined Watson Fuels for decades."
Inspirit Capital was also advised by Mayer Brown (Legal), JacksonBreen (IT), Evology (Operational), Confidas People (Management), European Valuations (Collateral Agents) and Howden (Insurance).
