Refuel Gets $511M Capital Infusion to Further Acquisition Strategy

CHARLESTON, S.C. — Refuel Operating Co. LLC received a $511 million capital infusion as the operator of more than 175 convenience stores in North Carolina, South Carolina, Texas, Mississippi and Arkansas continues its growth strategy.

First Reserve, a middle-market private equity firm focused on the energy and industrials sectors, tapped Sixpoint Partners to close the transaction, named the First Reserve Refuel Fund. Refuel entered into a partnership with First Reserve in April 2018 to form FR Refuel to bring enhanced capitalization to support an aggressive, acquisition-based growth strategy.

The First Reserve Refuel Fund acquired Refuel from a legacy First Reserve fund. The fund also provides additional "dry powder" for Refuel to continue pursuing its acquisition-driven growth strategy.

"First Reserve is appreciative of the strong support and demand received from the limited partner community throughout the fundraise," noted First Reserve Partner Neil Wizel. "We are excited to continue to partner with the Refuel management team to execute on our growth strategy. The additional capital is intended to fund expansion of the business as we continue to focus on building a leading U.S. convenience store brand."

The fund was led by the Goldman Sachs Asset Management Vintage Funds and existing First Reserve limited partners were provided the option to take liquidity or participate in the continued growth of Refuel.

"Sixpoint is proud to have represented First Reserve in this innovative transaction, and of the strong outcome achieved for all parties. Refuel is a blue-chip asset that will benefit from more capital and time to continue and accelerate its growth trajectory," said Eric Zoller, founder and partner at Sixpoint Partners.

Refuel began as a single-store operation in 2010 and today operates more than 175 c-stores across a five-state footprint. In its latest deal, it agreed to acquire the assets of Action Fuels LP, a San Antonio, Texas-based wholesale and retail fuel distributor and convenience store operator.

"Given the increasing selectivity we are seeing in the market around single-asset transactions, we view robust demand for the fund as a testament to First Reserve's reputation and the strength of the underlying Refuel platform," added Shawn Schestag, partner and head of capital solutions for Sixpoint Partners.

Refuel is based in Charleston.