Brulines fuels growth at its petrol station arm with acquisition

Brulines is buying Halifax-based LBI Installations, which provides web-based systems to manage maintenance of petrol stations. The deal is worth an initial 360,000, followed by a performance-based deferred consideration.

Stockton-on-Tees-based Brulines has been on the acquisition trail in recent years as it bids to build a complete petrol station division.

Earlier this month it sealed the 1.2m acquisition of Retail & Forecourt Solutions (RFS), an expert in fuel pump calibration.

"This acquisition is one of the final elements in building a product portfolio and organisation capable of delivering our forecourt strategy," said Phil Maud, managing director of Brulines' forecourt services division. "Our recent acquisitions in forecourt services are well run, profitable businesses employing high-calibre people.

"We are now focused on growing our business organically by building on the broad customer base which has resulted from this year's acquisitions."

Brulines now works with UK forecourt retailers accounting for more than 60 per cent of the fuel sold in the UK.

Upon completion, LBI managing director Craig Brocklehurst will be appointed operations director of the forecourt division, reporting to Mr Maud.

Founded in 2006, LBI also offers forecourt engineering and project management services. It made underlying earnings of 166,000 in the year to the end of March, on turnover of 1.2m. The deal, subject to due diligence, is expected to complete on July 16.

Brulines' chief executive James Dickson said: "This acquisition is a key element of our customer proposition and ensures that Brulines' forecourt services division is in a strong position to continue our innovation and to challenge larger players in the fuel management sector such as Fairbanks in the UK, and internationally, global players such as Gilbarco Veeder-Root.

"I am very confident that we are now well placed to replicate in the forecourt market our success in the leisure sector.

"Additionally, the LBI system has capabilities which we believe can offer value to customers within our leisure division, and we will look to take advantage of that opportunity over time."

Brulines' core technology helps pub owners monitor their draught beer systems. In 2008 it bought its closest rival, Tadcaster-based Nucleus Data, for 3.8m.