Phillips 66 announced that its subsidiary Phillips 66 Continental Holding GmbH has entered into a definitive agreement to divest a 65% interest in its Germany and Austria retail marketing business, such as JET-branded sites, to a consortium owned by subsidiaries of investment firms Energy Equation Partners and Stonepeak. And Phillips 66 will retain a non-operated 35 percent interest in the business through a newly formed joint venture.
The deal values the Germany and Austria retail marketing business at an enterprise value of approximately €2.5 billion (approximately $2.8 billion), representing an implied Enterprise Value/EBITDA multiple of 9.1x based on expected 2025 EBITDA. And Phillips 66 expects to receive pre-tax cash proceeds of approximately €1.5 billion (approximately $1.6 billion), after customary purchase price adjustments. The proceeds will support the company’s strategic priorities, including debt reduction and shareholder returns.
In connection with the deal, Phillips 66 will enter into a multi-year agreement to continue to supply the business with products from the Mineraloelraffinerie Oberrhein GmbH & Co. KG (MiRO) Refinery.
The German and Austrian retail business includes 970 sites, of which 843 are JET-branded sites. And the deal is expected to close in the second half of 2025, subject to regulatory approvals and other customary conditions.
KEY QUOTE:
“This transaction advances our strategy to optimize our portfolio and enhances long-term shareholder value. The newly formed joint venture allows us to monetize this non-core asset while retaining the ability to benefit from its future growth.”
Mark Lashier, chairman and CEO of Phillips 66
