First Reserve and Fortress Investment Group have entered into an agreement to acquire a majority stake in Island Energy Services, a leading fuel logistics provider in Hawaii, aiming to enhance its operations and drive growth in the renewable energy sector.

Target Company Overview

Island Energy Services, LLC (IES) stands out as one of Hawaii's premier integrated fuel logistics and infrastructure providers. The company boasts a comprehensive network that encompasses the import, storage, and distribution of refined products across the Hawaiian islands. IES operates vital assets, including over 5.7 million barrels of storage capacity and an extensive pipeline infrastructure spanning 57 miles. This infrastructure directly supports major customers such as airlines, utilities, retailers, and government entities. Additionally, IES manages a branded network of 50 Texaco® service stations and convenience stores strategically positioned throughout the state.

Industry Overview in Hawaii

Hawaii's energy sector is characterized by a diverse mix of energy resources, with a significant emphasis on imported fuels due to limited local sources. The state's strategic location in the Pacific makes it a hub for energy logistics, presenting unique challenges and opportunities. As Hawaii moves towards greater energy independence, there is an increasing focus on integrating renewable energy sources and enhancing energy efficiency across all sectors.

The demand for reliable fuel logistics is critical for Hawaii, where tourism and other industries heavily rely on consistent fuel supply chains. The growing emphasis on sustainability and