Billion-Euro Deal: Financial Consortium Acquires Majority Stake in JET Gas Stations
Financial investors acquire jet refueling facilities.
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Financial investors have set their sights on Jet-branded gas stations in Germany and Austria! The American company, Philips 66, is selling a staggering 65% majority stake for approximately 1.5 billion euros to a consortium backed by Energy Equation Partners and Stonepeak. This deal marks a significant milestone, with a total of 970 gas stations up for grabs, 843 of which operate under the Jet brand.
Philips 66 plans to maintain a 35% stake in the businesses through a new joint venture. These sale proceeds will be primarily utilized to diminish debt and doled out as dividends to shareholders, as declared by Philips 66. The deal is projected to conclude during the second half of the year.
The investment firm Elliott has been placing pressure on Philips 66, advocating for changes such as business unit spin-offs. This announcement concerning the sale came close on the heels of the annual general meeting where the supervisory board's composition is set to be determined.
[1] Source: ntv.de https://ntv.de/[2] Source: dpa https://www.dpa.de/
Investors behind the consortium include Energy Equation Partners and Stonepeak, who are acquiring a 65% stake in the businesses, encompassing 970 retail fueling sites, 843 of which are JET-branded establishments. The deal is valued at $2.8 billion, with Philips 66 pocketing a pre-tax cash amount of $1.6 billion with the sale.[1][2]
As part of their strategy to optimize their portfolio and boost long-term shareholder value, Philips 66 will retain a minority stake, allowing them to capitalize on the future growth of the businesses while disposing of a non-core asset with ease. The formation of this joint venture marks a collaborative approach to managing and potentially expanding the retail fuel network in Germany and Austria, although specific plans, such as potential expansions or operational changes, have yet to be detailed.[2] Keep an eye out for further developments!
For the financial investors, led by Energy Equation Partners and Stonepeak, the acquisition of a 65% stake in JET Gas Stations for approximately 1.5 billion euros signifies a significant financial venture. This deal, valued at around $2.8 billion, will lead to a joint venture between the investors and Philips 66, with the latter retaining a minority stake for future growth possibilities while disposing of a non-core asset.
