Ampol has entered into a binding agreement with Australian investment manager Allegro for the sale of Gull.
Under the terms of the sale, Allegro will acquire 100 per cent of Gull for around NZ$509 million as well as the assumption by Allegro of around $63 million of leases and debt like items.
Ampol purchased Gull for A$325 million in 2017, and the business currently generates about A$46.5 of EBITDA.
The acquisition of Gull by Allegro is subject to approvals by the New Zealand Commerce Commission (NZCC) and the Overseas Investment Office (OIO). In addition, the transaction will be subject to Ampol successfully completing the acquisition of Z Energy.
The transaction is fully funded, with Allegro’s financing provided by Ares Capital and ASB. Under the sales arrangement, Ampol has committed to a five-year fuel supply agreement with Gull as requested by Allegro, subject to annual price reviews and termination rights.
Ampol committed to divest Gull in full to ensure any potential competition law issues were fully addressed as part of its application to the NZCC for approval to acquire Z Energy. The NZCC’s clearance decision is pending.
If this clearance is obtained, the NZCC will then also need to approve Allegro as the purchaser of Gull and the relevant transaction documents. It is expected the Gull divestment will occur within a prescribed period following completion of the scheme to acquire Z Energy which remains on track to complete in the first half of 2022.
Ampol intends to use the proceeds of the sale of Gull towards funding the proposed acquisition of Z Energy.
Locally, Ampol has recently celebrated the rebranding of its 1000th retail site at Goondiwindi in Queensland.
The transition of the Goondiwindi truck stop and depot to the iconic Ampol brand is a major milestone in the national rebrand program, which commenced in August 2020.
The rebranding of the 1000th site in Goondiwindi follows the transition of three retail sites in Moree which were completed in the second half of 2021.
The Goondiwindi transformation was celebrated onsite with local businesses, customers and community partners, acknowledging the important role regional communities and businesses play in Ampol’s history and current operations. Ampol has a long and proud history across the Darling Downs region of Queensland and the North West Slopes region of New South Wales.
Ampol’s first fuel pumps in regional Australia were installed in Moree in the late 1930s, supporting the then small Australian company’s early expansion in a market dominated by major global oil companies. Today’s truck stop in Goondiwindi serves around 160,000 customers each year and is a key site supporting local business and the transport industry in regional Queensland.
Matthew Halliday, Ampol’s Managing Director and CEO, said that while the revitalised Ampol looks a bit different to the Ampol of yesterday, the company’s values and proposition for customers remain the same.