Viva Energy has completed the acquisition of fuel and convenience store chain operator OTR Group from Peregrine Corporation for $1.22 billion.
Currently, OTR Group’s network includes 195 fuel and convenience stores and 31 stand-alone stores.
Within the network are 94 quick service restaurants including Subway, Wokinabox, Guzman Y Guzman, KrispyKreme, Hungry Jacks, and Oporto. Seventy-five of these stores are under the same roof of the convenience store, often sharing the same counter.
In addition, OTR Group’s Smokemart and Giftbox network has 278 company-owned and controlled leasehold stores across Australia.
OTR Group also owns wholesale fuel and lubricant businesses namely Mogas Regional and Reliable Petroleum, serving commercial customers in regional South Australia and the Northern Territory.
“Having completed the OTR Group and Coles Express acquisitions, we will extend our world-class convenience retail store offering across the largest company-operated network in Australia, with a pathway to more than 1000 stores,” Viva Energy CEO and MD Scott Wyatt said.
Wyatt added that the acquisition marks a critical step in Viva Energy’s plan to grow its earnings to over $500 million in the next five years.
Viva Energy expects the acquisition to deliver about $105 million earnings before interest, taxes, depreciation, and amortisation this fiscal year and overall synergies of $60 million per year on a post-integration basis.
Last December, the Australian Competition and Consumer Commission said it will not oppose the acquisition after accepting a court-enforceable undertaking from Viva Energy committing to divest 25 Coles Express sites in South Australia.
