EG Group to buy OMV Deutschland’s forecourt portfolio in Germany for €485m
British convenience retailer EG Group has signed a binding agreement with OMV Deutschland to acquire a network of 285 petrol station forecourts in Southern Germany for €485 million.
The petrol station forecourts are located mainly in the Bavaria and Baden-Württemberg regions.
With the acquisition, EG Group will expand its footprint in Germany, where it already operates sites under the ESSO fuel brand.
Zuber Issa – co-Founder and co-CEO of EG Group said: “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.”
EG Group will inherit existing fuel supply agreements from OMV Deutschland, as per the agreement.
Mohsin Issa – co-Founder and co-CEO of EG Group said: “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.”
The purchase price of the deal is contingent on customary net working capital and adjustments in net debt. EG Group will fund the consideration through its existing cash reserves and facilities.
As part of the transaction, the British convenience retailer has also agreed to takeover outstanding lease liabilities related to the assets, which implies a total enterprise value of €614 million.
Subject to receipt of regulatory approvals, the deal is expected to close next year.