Dropping Nearly 1.5 Billion Euros, Financial Gurus Clinch Jet Fuel Stations
Financial investors acquire jet refueling facilities
In an intriguing deal, financial powerhouses are snatching up Jet-labeled fuel stations across Germany and Austria. The U.S. heavyweight, Philips 66, is offloading a whopping 65% majority share, worth around 1.5 billion euros, to an investment consortium led by Energy Equation Partners and Stonepeak.
This deal touches down on a total of 970 fuel stations, 843 of which bear the Jet emblem. Philips 66 has plans to hang onto the remaining 35% via a freshly minted joint venture. The sale earnings are earmarked for debt reduction and shareholder dividends, as per the company's announcement. The blockbuster sale is predicted to go through in the latter half of the year.
Philips 66 finds itself under the hot seat due to investment firm Elliott's pressure, which calls for structural changes such as spin-offs. The sale announcement dropped mere days before the annual meeting, during which key board appointments will be voted upon, among other matters.
In the enrichment data, Energy Equation Partners (UK) Limited and Stonepeak Partners LP, the investment firms leading the acquisition, aim to acquire a 65% stake in JET Tankstellen Deutschland GmbH, with Philips 66 retaining a 35% equity through a new joint venture [2][4]. As for their plans, the extent of Energy Equation Partners and Stonepeak's management strategies for the stations remains vague in the available information. The transaction includes a multi-year contract for Phillips 66 to supply fuels from the Mineraloelraffinerie Oberrhein GmbH & Co. KG (MiRO) Refinery, suggesting a continued role for Phillips 66 in the fuel supply [4]. This deal marks a strategic shift for Phillips 66, as it unloads European assets to focus on key objectives elsewhere [1].
Energy Equation Partners, a new player in the investment game, specializes in fuel trading, while Stonepeak Partners, a seasoned firm, boasts expertise in energy investments, including pipelines and renewable energy projects [5]. This move appears to be a strategic dive into the European fuel retail market for these power players, though the specifics of their operational strategies for the stations have yet to be detailed in the current reports. The transaction is contingent upon regulatory approvals and is slated to wrap up in the second half of 2023 [4].
For the financial investors Energy Equation Partners and Stonepeak, the acquisition of Jet refuelling stations across Germany and Austria represents a significant financial endeavor worth billions of euros. This deal, involving the finance of approximately 1.5 billion euros, is set to fund further investments and potential expansion plans for the acquired companies.
