Jun 02, 2025
FIRST RESERVE AND FORTRESS INVESTMENT GROUP ANNOUNCE AGREEMENT TO ACQUIRE MAJORITY STAKE IN ISLAND ENERGY SERVICES
Partnership to Leverage First Reserve's Experience Investing in Value-Added Infrastructure
STAMFORD, Conn. and HOUSTON, June 2, 2025 /PRNewswire/ -- A newly formed partnership between First Reserve, a leading private equity firm investing across energy, utility, and industrial markets, and funds managed by affiliates of Fortress Investment Group ("Fortress"), a leading global investment manager, today announced an agreement to acquire a majority stake in Island Energy Services, LLC ("IES" or the "Company"), one of Hawaii's leading integrated fuel logistics and infrastructure providers. The Company's current owner, an affiliate of One Rock Capital Partners, LLC ("One Rock"), will remain an investor in the Company. Financial terms of the transaction, which is expected to close in the third quarter, were not disclosed.
IES operates a fully integrated refined product import, storage, and distribution infrastructure network in Hawaii, managing leading fuel-import and distribution assets that serve major airlines, utilities, retailers, and government customers across the state. The Company's assets include over 5.7 million barrels of storage capacity and 57 miles of pipeline infrastructure with direct connectivity to Honolulu Airport, as well as Joint Base Pearl Harbor-Hickam. IES also operates Hawaii's leading branded network of 50 Texaco® service stations and convenience stores strategically located across the state.
"This transaction represents a compelling opportunity to leverage First Reserve's long track record and expertise successfully investing in value-added infrastructure businesses. We believe that existing domestic distribution businesses and logistics infrastructure, including refined product storage and terminal assets, will continue to play a meaningful role in meeting the energy demands of the US economy," said Gary Reaves and Neil Wizel, Managing Partners at First Reserve. "The Company serves as an integrated partner for the import, storage, and distribution of the refined products that help power Hawaii's economy. Through our decades of experience and relationships, we intend to support management in driving long-term growth and enhanced utilization of this important infrastructure network."
"We are excited to partner with Jon Mauer and the IES team to capture the next phase of strategic growth opportunities for the Company," said Paul Steen, Managing Director at First Reserve. "We look forward to executing on a shared vision for value creation with IES management, including supporting Hawaii's transition to biofuels while continuing to be a world-class partner to a growing base of government, commercial, and retail customers across Hawaii."
"We're pleased to support IES through this investment and look forward to working with Jon and the rest of the IES team," added Drew McKnight, Co-CEO and Managing Partner, Fortress Investment Group. "IES's energy infrastructure is of high strategic and economic value for Hawaii and its communities. By working with the IES and First Reserve teams, we look forward to helping the company accelerate expansion of its renewable fuel capabilities that will position the company at the forefront of Hawaii's energy transition."
Jon Mauer, President and CEO of IES, added, "We look forward to this new growth chapter and working with First Reserve and Fortress to build on the momentum across our business as we continue to meet the energy needs of our island communities. The network, services, and resources our organization provides have never been more important to Hawaii than they are today. I am confident that with the support and expertise of the First Reserve and Fortress teams working with our outstanding employees, we will continue to grow our business and offerings in ways that deliver real value for customers and reinforce our reputation for reliability and high-quality fuels and services."
About First Reserve
First Reserve is a leading private equity firm investing across Infrastructure Solutions, Value-Added Infrastructure and Resources strategies with exposure in energy, utility, and industrial markets. Founded in 1983, First Reserve has more than 40 years of industry insight and has cultivated a differentiated network of relationships and portfolio exposure. Since inception, First Reserve has raised over $34 billion of aggregate capital and has developed operational expertise built from over 750 transactions, including platform investments and add-on acquisitions. Please visit www.firstreserve.com for further information.
About Fortress Investment Group
Fortress Investment Group LLC is a leading, highly diversified global investment manager. Founded in 1998, Fortress manages $50 billion of assets under management as of 31 December 2024, on behalf of approximately 2,000 institutional clients and private investors worldwide across a range of credit and real estate, private equity and permanent capital investment strategies.
AUM refers to assets Fortress manages, including capital that Fortress has the right to call from investors, or investors are otherwise required to contribute, pursuant to their capital commitments to various funds or managed accounts. For more information, please visit www.fortress.com.
About Island Energy Services
IES is one of Hawaii's leading integrated fuel logistics and infrastructure companies, operating assets that support the State's energy supply chain. IES provides fuel storage, pipeline transport, and distribution services to major commercial customers including airlines, utilities, retailers and government customers. The Company operates Hawaii's leading branded retail fuel station network, consisting of 50 Texaco® service stations and convenience stores. IES's assets include over 5.7 million barrels of storage capacity and 57 miles of pipeline infrastructure. For more information, please visit www.islandenergyservices.com.
About One Rock Capital Partners, LLC
One Rock makes investments in companies with potential for growth and operational improvement using a rigorous approach that utilizes highly experienced Operating Partners to identify, acquire and enhance businesses in select industries. The involvement of these Operating Partners is designed to afford One Rock the ability to conduct due diligence and consummate acquisitions and investments in all types of situations, regardless of complexity. One Rock works collaboratively with company management and its Operating Partners to develop a comprehensive business plan focused on growing the enterprise and its profitability to enhance long-term value.
For more information, visit www.onerock.com.
Contacts
Erik Carlson / Madeline Jones
Joele Frank, Wilkinson Brimmer Katcher
212.355.4449
FirstReserve-JF@joelefrank.com
Mark Lane
Fortress Investment Group
+1.917.842.4228
mlane@fortress.com
SOURCE First Reserve
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