In a landmark deal for the employee ownership (EO) community, Highland Fuels - a company that transitioned to employee ownership in August 2023 - has acquired fellow Scottish energy business Carnegie Fuels.
This move not only establishes Highland Fuels as Scotland’s leading independent fuel distributor and forecourt operator but also serves as a compelling case study in how EO businesses can approach growth, acquisitions, and the strategic deployment of capital.
It represents a significant milestone in employee-owned business strategy, demonstrating how EO companies can leverage their ownership model as a competitive advantage in M&A processes. Highland Fuels won because their EO structure addressed the Carnegie family's concerns about long-term employee welfare and business continuity.
Strategic EO Growth
There’s a tendency to view employee ownership through a defensive lens - preserving jobs, maintaining independence, protecting legacy. But this deal reframes EO as a springboard for ambitious, strategic growth.
“This (employee ownership) was a key factor in our decision. We wanted to ensure that our team… are looked after not just today but into the future…”
Highland Fuels now operates 11 depots, 16 petrol stations, and a fleet of 50 road tankers across Scotland and beyond. The acquisition strengthens its national footprint, while reinforcing its core commitment to communities and service excellence. It demonstrates that EO companies are not just sustainable - they are scalable.
This model presents a powerful opportunity for the EO sector: acquiring traditional businesses and integrating them into existing EO structures. It offers a scalable route to grow the number of employee-owners in the UK - without each business needing to undertake its own independent transition.
Using Capital for Long-Term Value Creation
One of the key questions for EO firms - particularly newly transitioned ones - is how to deploy cash reserves. Highland Fuels offers a timely example: use capital to fuel values-aligned expansion. Rather than sitting on reserves or using them solely for internal reinvestment, the company has used its financial strength to:
Deepen service delivery capabilities,
Integrate a respected local brand,
Bring more people into employee ownership.
This kind of deployment enhances long-term value, strengthens culture, and delivers returns to employee-owners.
A Values-Driven Acquisition
Highland Fuels’ decision to acquire Carnegie Fuels was rooted in alignment - not just in business goals, but in values. According to both companies, the deal is designed to ensure long-term stability for employees, maintain operational continuity, and safeguard community-focused service. Carnegie Fuels will retain its brand and leadership structure, while its staff will join Highland Fuels as beneficiaries of the company’s Employee Trust.
“We’re honoured to be continuing the Carnegie legacy and welcoming the team into the Highland Fuels family. This partnership is built on shared values and a commitment to long-term success…”
A Blueprint for the EO Sector
This acquisition should be seen as a blueprint. It demonstrates that:
Employee ownership supports - not limits - bold growth.
Capital can be deployed strategically for long-term cultural and financial value.
Beyond scale, acquisitions a significant pathway to expand employee ownership itself.
For EO businesses considering their next chapter, Highland Fuels shows what’s possible when purpose, strategy, and ownership align.