Zurich (awp) – The retail group Valora announced on Monday a “significant” extension of its collaboration with the Aargau petrol station operator Oel-Pool. This translates into the takeover of 71 additional stores, which will operate under the Avec brand.
“In addition to locations in city centers, high-traffic locations such as train stations and airports as well as shopping malls, petrol station shops fit perfectly into our store portfolio,” said Michael Mueller, Chief Executive Officer (CEO) of the Valora group, quoted in a press release.
The start of the gradual takeover of the 71 Oel-Pool shops, which are located in BP service stations in French-speaking, north-western and eastern Switzerland, is scheduled for April 2023. The transaction, the financial details of which are n have not been disclosed, must still receive the approval of the Competition Commission (Comco).
This extension of the collaboration should allow Valora to increase its presence in hydrocarbon sales outlets in Switzerland to more than 170 stores by the end of 2023, for an estimated annual turnover of more than 300 million Swiss francs.
Consistent Operation
The Basel group recalls that it has been active in the service station sector for around twenty years. In addition to the Tamoil shops “with a strong presence in French-speaking Switzerland and in the Zurich conurbation”, Valora has developed its presence in German-speaking Switzerland, in particular through the takeover announced in summer 2021 of 39 stores – operating mainly under the Aperto brand – from Moveri, the company fuels from Oel-Pool.
In a note to the market, the Cantonal Bank of Zurich (ZKB) estimates the contribution of the additional points of sale to the group’s income at 120 million Swiss francs. Added to this is the fact that Valora will not pay a penny to take over the lease contracts and has no obligation to convert.
The ZKB anticipates an investment charge of 15 million spread over several years in the medium term, but considers the operation sensible, insofar as it should allow the Basel retailer to improve its profitability, with the key to an increase of at least 7% of earnings per share (EPS) by 2024. The market weighting recommendation remains in place.
Same story at Baader Helvea, which sees in this acquisition “a strategically correct step” on the part of Valora to strengthen its presence in this segment. The Geneva broker recommends the stock for purchase (add), with a target price set at 215 Swiss francs.
The announcement of the day was obviously also the gAugust of capital holders. At 10:10 a.m., the registered Valora took off by 3.5% to 166.20 Swiss francs, against the tide of an SPI market down 0.87%.
buc/vj/ol