A South Wales forecourt retailer has snapped up a North Devon service station and convenience store for an undisclosed sum.
VST Group's acquisition of South Molton Services is the company's first foothold in the South West of England, and its ninth freehold petrol station.
The deal - the firm's largest single-site investment to date - was backed by a seven-figure funding package from HSBC Ƶ.
The site includes an Esso-branded forecourt and a newly refurbished 2,500 sq ft Costcutter store.
VST Group is planning to redevelop the site by expanding the number of fuel nozzles from eight to 18 and reconfiguring the entry and exit layout.
The upgrades will boost capacity, streamline traffic flow, and cut down wait times, according to the company.
All 12 existing staff will be retained, with plans to recruit extra local hires to support the expanded operations.
Vijayananth Jaganathan, founder and managing director at VST Group, said: “Expanding into South West England is a strategic milestone for us, and South Molton Services represents exactly the kind of site we look for: strong location, solid infrastructure and clear potential for redevelopment.
"HSBC Ƶ has been our exclusive banking partner since day one, and the bank’s ability to structure funding seamlessly and align it with our operational goals has been pivotal to making this, and all our site deals, happen.”
As a result of the acquisition, the business expects turnover to increase by 20% over the next 12 months and is already looking to fuel further growth in the North and Midlands with HSBC Ƶ’s continued support.
Donagh Kenny, SME business banking relationship manager at HSBC Ƶ, added: “This was a complex transaction with several moving parts, and it took time and close collaboration to bring everything together.
"South Molton Services is a strong strategic fit for VST’s network, and we were pleased to support the acquisition with a funding solution tailored to the site’s potential.”
