Viva Energy has acquired the convenience store operator On the Run (OTR Group) for $1.15 billion from the Peregrine Corporation.
The transaction will amalgamate the OTR, Smoke Mart & Gift Box and Wholesale Fuels businesses with Viva Energy.
The merger will also create a network of more than 1000 convenience retail outlets which also includes the Coles Express convenience stores and Liberty Convenience businesses.
Viva Energy’s CEO and MD, Scott Wyatt, said the acquisition is “transformational” as OTR will become Viva Energy’s flagship convenience brand, replacing the Coles Express brand over time.
“The introduction of OTR’s superior convenience offering, including quick-serve restaurants, will help revolutionise the diversity and attraction of our retail offering.
“OTR outlets offer an attractive and welcoming store environment, supporting increased dwell time, which is likely to be a key factor in successfully introducing electric vehicle recharging facilities over time.”
The business expects the acquisition to deliver $4.2 billion in sales revenue on a pro forma forecast in this financial year.
The Shahin Family, which owns OTR, has become a major shareholder of Viva Energy Australia.
OTR’s founder, Yasser Shahin, said expanding the brand Australia-wide delivers on “several core objectives” that have underpinned the business since its inception.
“I will continue to support the business following the completion of the transaction, and the entire team and I are completely committed to the successful integration of these businesses.”
The transaction is expected to be completed in the second half of this year and is subject to customary Foreign Investment Review Board and ACCC approval.
- Further reading: OTR expands into NT and WA with Puma acquisition
