Phillips 66 has made a significant move by entering into a definitive agreement to divest a 65 percent interest in its retail marketing business in Germany and Austria. The transaction values the business at an enterprise value of approximately €2.5 billion (approximately $2.8 billion) and represents an implied enterprise value/EBITDA multiple of 9.1x based on expected 2025 EBITDA.
Phillips 66 is expected to receive pre-tax cash proceeds of approximately €1.5 billion (approximately $1.6 billion) after customary purchase price adjustments. The company plans to use the proceeds to support strategic priorities, including debt reduction and shareholder returns.
The Germany and Austria retail business being divested includes 970 sites, of which 843 are jet-branded sites. As part of the transaction, Phillips 66 will retain a non-operated 35 percent interest in the business through a newly formed joint venture. Additionally, Phillips 66 will enter into a multi-year agreement to continue supplying the business with products from the Miro refinery.
The transaction is anticipated to close in the second half of 2025, subject to regulatory approvals and other customary conditions. This move aligns with Phillips 66's strategy to optimize its portfolio and enhance long-term shareholder value, as stated by Mark Lashier, Chairman and CEO of Phillips 66.
This news comes as Phillips 66 continues to position itself as a leading integrated downstream energy provider, with a portfolio that includes midstream, chemicals, refining, marketing and specialties, and renewable fuels businesses. Today the company's shares have moved -0.22% to a price of $124.43. For more information, read the company's full 8-K submission here.
