RUBIS TO PURCHASE FOR 115 M€ BP'S LPG RETAIL OPERATIONS IN PORTUGAL AND TO CONSIDER AN EQUITY ISSUE
02 August 2013 - 1:45AM
August 1st,
2013
RUBIS has signed an agreement with
BP to purchase its 170 000 tons LPG distribution business in
Portugal representing Rubis' Europe based largest single
market.
This acquisition clearly fits into
Rubis' niche market strategy:
-
Well established
business: having been operating for over 50 years, it is a
largely autonomous and well integrated supply and marketing
business, benefitting from a high market density across all
segments and one of the leading market participants;
-
Strong asset
base: the business has access through JV agreements to the
essential import infrastructure to economically supply the market
which is structurally dependent on LPG imports, with access to over
65 000 m3 of storage
capacity, as well as it's own filling plants and distribution
platforms;
-
Significant market
presence: the business secures the majority of sales
revenue from the cylinder segment, the most resilient during
business cycles;
-
Potential for
growth: coming from the
development of the autogas segment, piped LPG to housing estates,
as well as developing additional sales in Spain following
deregulation.
Despite the economic difficulties
in Portugal over the past 3 years, the business has nevertheless
shown to be particularly resilient, and the slowdown of the
expansion of the natural gas network and the increased
competitiveness of LPG verses other fuels indicates further
capacity to rebound when the economy stabilizes.
Rubis and BP have signed today the
transaction documents, and completion should take place in the
first half of 2014 after completing the necessary transaction steps
and implementation of IT infrastructure.
The agreed cash and debt free
purchase price is €115 million represents an EBITDA multiple of
less than 5 based on 2012 earnings and benefits from downward price
adjustment mechanism based on future earnings.
In addition to current capital
expenditure, developments (Antwerp, Rotterdam and Ceyhan) and
acquisitions (Jamaïca and Reichstett), over the past year, this
latest acquisition brings total cumulative Group's investments or
commitments close to €350 million.
Those financing needs are already
secured by existing credit lines, the equity line and current
cash-flow generation. Nevertheless, in order to carry on its growth
strategy as further opportunities for development arise, the Group
is considering an equity issue aiming at covering about one fourth
of its financial commitments while securing an earning per share
enhancement factor as a result of this acquisition.
Next update:
2013 Half-year results:
August 29, 2013
Press Contact
PUBLICIS CONSULTANTS - Lise
Ardhuin
Tel.: +33 (0) 1 44 82 46 95 |
Analyst Contact
RUBIS - Bruno Krief
Tel.: +33 (0)1 44 17 95 95 |
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