Selling Jet-Branded Fuel Stations for €1.5 Billion to Financial Investors
Financial entities acquire jet refueling facilities
Get ready for a major shakeup in the fuel station business! The Jet-branded gas stations in Germany and Austria are being sold to financial investors for around 1.5 billion euros. The deal is being facilitated by the US company Philips 66, with a 65% majority stake going to a consortium of investors backed by Energy Equation Partners and Stonepeak.
In total, 970 stations will be sold, and 843 of them will continue to fly the Jet brand. Philips 66 plans to retain the remaining 35% stake in a new joint venture. The funds from the sale will be used to reduce debt and distribute profits to shareholders. The transaction is expected to close in the second half of the year.
Philips 66 is under some heat from investment firm Elliott, which is pushing for various changes, including the spin-off of certain business units. This sale announcement came just days before the annual general meeting, where the composition of the supervisory board will be voted upon.
Who are the Major Players?
- Stonepeak: a prominent alternative investment firm with a focus on infrastructure and real assets.
- Energy Equation Partners (EEP): a newly established investment firm with a wealth of expertise in fuel retail.
- Phillips 66: a multinational energy company that owns JET Tankstellen Deutschland GmbH. It's hanging onto a minority stake while selling the majority.
The Importance of this Sale to Philips 66
- Optimizing the Portfolio: This deal will allow Philips 66 to refocus on core assets, ultimately boosting long-term shareholder value.
- Selling Non-Core Assets: By monetizing this non-core asset, Philips 66 can continue to benefit from its potential future growth via its retained minority stake in the joint venture.
- Financial Gains: Philips 66 anticipates receiving approximately EUR 1.5 billion ($1.68 billion) in pre-tax proceeds after adjustments. The valuation of the business is around €2.5 billion, with an implied Enterprise Value/EBITDA multiple of 9.1x based on projected 2025 EBITDA.
- A Strategic Presence: Philips 66 will maintain a strategic presence in the German and Austrian markets with its retained minority stake in the joint venture, while aligning with its broader strategic goals.
Sources: ntv.de, dpa & Company Materials [1][2][3]
For billions of euros, financial investors are purchasing Jet-branded fuel stations across Germany and Austria from Philips 66, representing an extraordinary financial investment. This funding will help Philips 66 optimize its portfolio, sell non-core assets, and make strategic financial gains, while maintaining a strategic presence in the German and Austrian markets.
The companies involved in this deal include energy experts Energy Equation Partners and prominent infrastructure and real assets investment firm Stonepeak, alongside Philips 66 itself, whose joint venture with these investors will finance the purchase of around 970 jet refuelling stations.
