Jet Fuel Stations in Germany and Austria Sold to Investment Firms for €1.5 Billion
American organization enhances jet fueling infrastructure with silver coating
Have a gander at the latest shakeup in the oil industry! Jet-branded fuel stations in Germany and Austria are finding new financial partners. American conglomerate Phillips 66 is offloading a substantial 65% stake for around 1.5 billion euros to a consortium backed by Stonepeak and Energy Equation Partners.
So, what's the skinny on this deal? A prestigious 970 stations, with 843 operating under the Jet brand, are up for grabs. The stations will continue their supply from Phillips 66's refinery in Karlsruhe, Germany. The remaining 35% stake will be kept by Philips 66 via a joint venture.
Why's Philips 66 shedding this portion of its assets? Easy peasy! The company's planning to use the funds to settle debts and send some cash back to shareholders. FYI, the deal's expected to wrap up in the second half of the year, with Philips 66's stock from Houston, Texas, dropping 1% to €123.57. Critics from TD Cowen are scratching their heads, wondering why Philips 66 isn't parting ways with all its stations.
Philips 66's under pressure from investment firm Elliott, who's clamoring for changes such as business unit separation. Coincidentally, the sale announcement dropped just days before the annual general meeting, where the composition of the supervisory board will be voted on.
Speaking of oil conglomerates, they've been shedding their fuel station networks in Germany like hot potatoes recently. Esso fuel pumps of ExxonMobil went to British retailer EG Group in 2017, and OMV fuel stations hopped onto the bandwagon in 2022. In 2023, Canadian Alimentation bagged the Total fuel stations of French TotalEnergies in Germany and the Netherlands for a cool 3.3 billion dollars.
Sources: ntv.de, jpe/dpa/rts
- Petroleum Industry
- Germany
- Austria
- M&A (Mergers and Acquisitions)
Insights:
For these investment firms, this stake acquisition presents numerous strategic advantages and growth opportunities:
- Diversification: New players can expand their portfolios by entering the European fuel retail market, and take advantage of potential growth areas, such as electric vehicle charging infrastructure and convenience retailing.
- Secure Supply Chain: Forming partnerships with established companies like Phillips 66 ensures a reliable supply chain for the fuel retail business.
- Stable Revenue Stream: Accumulating a well-established network of fuel retailing service stations provides consistent revenue, serving over 700,000 customers daily.
- Favorable Valuation: The transaction values the business at a multiple of 9.1x based on 2025 EBITDA, indicating that the investment firms perceive ample potential for long-term financial returns.
The investment firms stand to gain strategic advantages through their acquisition of Phillips 66's stake, potentially diversifying their portfolios, securing a reliable supply chain, and increasing their revenue stream through the ownership of a well-established network. Moreover, the transaction's valuation of 9.1x based on 2025 EBITDA suggests favorable prospects for long-term financial returns. These advantages could be further enhanced by capitalizing on growth opportunities in the European fuel retail market, such as electric vehicle charging infrastructure and convenience retailing.
