OMV, the international, integrated oil, gas and petrochemicals company headquartered in Vienna, Austria, and EG Group, a leading global independent petrol forecourt convenience retail operator, reach agreement for EG Group to acquire the OMV filling station business in Germany.
The transaction is subject to required regulatory approvals and closing is expected in 2021.
The purchase price amounts to EUR 485mn. As part of the agreement, EG Group will assume outstanding lease liabilities resulting in a total enterprise value for the Business of approximately EUR 614mn. The purchase price is subject to customary net working capital and net debt adjustments.
The agreement encompasses 285 filling stations in southern Germany with focus on Bavaria and Baden-Württemberg, which have only a very limited degree of integration with OMV’s refinery in Germany, as the refinery is specialized in petrochemicals production. OMV remains strongly committed to its remaining operations in Germany centered on its highly integrated petrochemicals operations in the Burghausen refinery.
The acquisition will expand EG’s presence in Germany, where EG already operates sites under the ESSO fuel brand. As part of the agreement EG will inherit existing fuel supply agreements from OMV.
“We are delighted about the level of interest in our filling station business in Germany and to have reached an agreement with EG Group. This marks a further step in our previously announced 2-billion-Euro divestment program and this transaction will reduce OMV’s debt by approximately half a billion euros at the time of closing,” said Rainer Seele, Chairman of the Executive Board and CEO of OMV.
“We are very pleased to be welcoming the OMV Deutschland filling station business into EG Group. This attractive portfolio of forecourts with significant retail and foodservice operations is an exciting opportunity to expand EG’s footprint in Germany, a key European market where we see significant growth potential for our Group,” Mohsin Issa CBE and Zuber Issa CBE, co-Founders and co-CEOs of EG Group, commented.
“We are very pleased to have reached an agreement to acquire the OMV retail business in Germany. The acquisition is an exciting opportunity for us to expand EG Group’s footprint in Germany, a key European market where we see significant growth potential. We look forward to integrating the business into our broader portfolio and further strengthening it through our expertise in Grocery & Merchandise and Foodservice,” Zuber Issa added.
“The OMV team that will join the EG family have done an outstanding job of positioning the portfolio for success. The business delivers fuel throughput of approximately 1 billion litres per annum and has a loyal customer base. The supply agreements we will inherit are extremely competitive and alongside the continuation of OMV fuel card acceptance, provide a solid foundation on which we can continue to build,” Mohsin Issa mentioned.