VEA +3.25%: the fuel group has moved to bolster its convenience network with the purchase of On The Run (OTR), South Australia’s largest private company. Viva will pay $1.15b for OTR’s 205 convenience sites, 174 of which offer fuel. Also included in the purchase are a lubricants business and a number of tobacco and gift stores across the state with the group seeing around $3b of revenue per year. Viva will fund $1b of the deal with debt while the remainder, $150m, will be in equity which is subject to escrow, pricing the business on around 7x EBITDA after $60m in synergies.
MM is neutral VEA as it trades at all-time highs
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