Island Energy Services Acquired by First Reserve and Fortress Investment
Deal News | Jun 02, 2025 | First Reserve Corporation
First Reserve, a prominent private equity firm, and Fortress Investment Group, a global investment manager, have announced their agreement to acquire a majority stake in Island Energy Services (IES), a key player in Hawaii's fuel logistics and infrastructure sector. IES, currently owned by One Rock Capital Partners, LLC, will see One Rock retain a minority interest in the company. Although the financial specifics of this transaction remain undisclosed, the acquisition is expected to conclude by the third quarter of 2025. With over 5.7 million barrels of storage capacity and 57 miles of pipelines, IES is a pivotal entity in Hawaii's energy supply chain, serving airlines, utilities, and government agencies. The partnership is being positioned as a strategic move to leverage First Reserve's expertise in infrastructure investments to foster growth and innovation at IES, particularly in transitioning towards renewable energy sources. This acquisition highlights the significance of infrastructure and logistics in Hawaii's energy economy, promising enhanced services and reliability.
Sectors
- Energy
- Private Equity
- Infrastructure
Geography
- United States – The transaction primarily involves companies and assets located in Hawaii, a U.S. state, and involves American investment firms First Reserve and Fortress Investment Group.
- Hawaii – Island Energy Services operates exclusively in Hawaii, managing key infrastructure assets within the state, making Hawaii a focal point of this transaction.
Industry
- Energy – The acquisition involves Island Energy Services, which operates within the fuel logistics and infrastructure sector, key segments of the broader energy industry. The transaction focuses on energy distribution and the transition towards renewable energy sources.
- Private Equity – First Reserve and Fortress Investment Group, both significant players in the private equity and investment sectors, are orchestrating this acquisition, showcasing their involvement in strategic expansions and portfolio management.
- Infrastructure – Island Energy Services' assets, including pipelines and storage facilities, are critical infrastructure components that support Hawaii's energy supply chain, making infrastructure a pivotal sector in this transaction.
Financials
- Not disclosed – The financial terms of the transaction between First Reserve, Fortress, and Island Energy Services were not disclosed.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| First Reserve Corporation | Acquiring Company | Company | A leading private equity firm with a focus on energy, utility, and industrial markets. |
| Fortress Investment Group | Acquiring Company | Company | A global investment manager involved in a variety of investment strategies, including private equity. |
| Island Energy Services | Target Company | Company | A provider of fuel logistics and infrastructure services in Hawaii. |
| One Rock Capital Partners, LLC | Selling Company | Company | A firm that focuses on investments in companies with growth potential, currently the owner of IES. |
| Gary Reaves | Managing Partner | Person | Managing Partner at First Reserve, involved in the investment and acquisition strategy. |
| Neil Wizel | Managing Partner | Person | Managing Partner at First Reserve, contributing to the firm's strategy in infrastructure investments. |
| Paul Steen | Managing Director | Person | A Managing Director at First Reserve, overseeing aspects of the acquisition. |
| Drew McKnight | Co-CEO and Managing Partner | Person | Co-CEO and Managing Partner at Fortress Investment Group, involved in strategizing the investment. |
| Jon Mauer | President and CEO | Person | President and CEO of Island Energy Services, leading the company's operations and strategic vision. |