Fuel supplier Waitomo Group has signed a deal with Z Energy to purchase its Mini-Tankers and bulk commercial fuel delivery businesses.
The companies says they are now focused on ensuring a smooth transition of ownership and continuity of supply and service for customers. Settlement is expected to take place on 1 August 2023.
Waitomo owner Jimmy Ormsby says the deal is a major milestone for the family-owned business.
“For the last 75 years, from our inception in Te Kuiti in 1947 fuelling the Waitomo region up to now, we’ve continued to build up our core business in fuel distribution, as well as diversifying into retail fuel supply in 2012.
“We’ve been ambitious in our expansion plans, and that determination has resulted in today’s announcement.”
Ormsby says the acquisition is expected to double Waitomo’s current commercial volumes.
“Not many opportunities come up like this and, with our usual optimism and agility, we were able to make it happen,” he adds.
Once completed, it’s estimated Waitomo’s market share of the New Zealand ground fuels market will increase to around 7%.
Z chief financial officer Nicola Law says the sale to Waitomo represents a great opportunity for new direction, focus and investment that will benefit existing and new customers.
“The Mini-Tankers and bulk fuel business have been part of the Z whānau for many years, helping us meet the needs of our customers. “It’s great to know this will continue under Waitomo’s stewardship for the future.”
Waitomo chief executive Simon Parham says volumes supplied under the Mini-Tanker brand will continue to be delivered through an independent franchisee model with its own management team reporting through to him.
“Because the Mini-Tanker brand operates in both the North and South Island, purchasing the business also creates a national footprint for Waitomo, expanding on our existing network of retail sites stretching from Paihia to Dunedin.
“The bulk commercial fuel delivery business will continue to be serviced by the current third-party hauliers to ensure simplicity of operations and to maintain continuity of supply,” Parham says.
“The team’s buzzing, but the hard mahi now begins. Waitomo’s success is built on a simple formula -great people, top performance, and fairer fuel pricing.
“The same formula that will ensure we deliver a seamless transition to the new business for our new customers in August,” Parham says.
