Caltex to buy Scott’s fuel operations

Vehicles involved are associated with the depots rather than distribution

Caltex to buy Scott’s fuel operations
Caltex is discussing supply chain issues.

Caltex has agreed to buy the Scott’s fuel divisions for $95 million, including working capital and related acquisition costs.

To be finalised mid-year, the deal includes the businesses known as Scott’s Agencies and Sabadin Petroleum.

Some vehicles are involved in the transaction but they are associated with the depots rather than distribution.

"Caltex and Scott’s are committed to continuing to service the Scott’s Fuel Divisions’ customers with quality products, safely and reliably," a Caltex spokesman says.

"Scott’s customers will continue to be supplied until the transaction is finalised, after which time Caltex will manage the supply chain.

"Some arrangements may change once Caltex begins managing the supply chain, however this is still to be assessed."

The acquisition will complement the fuel  firm’s existing national network, according to Caltex Australia Managing Director and CEO Julian Segal.

"Strategically the acquisition is a good fit," Segal says.

"It is consistent with our strategic pillars of offering a comprehensive and targeted offer to customers across products, sales channels and geographies.

"This acquisition once again demonstrates our commitment to fuelling Australia into the future.

The purchase is expected to be earnings per share positive by the end of its first full year of operation, under Caltex ownership.

 It will be funded via existing financial facilities.

"This acquisition continues Australian ownership and management of the Scott’s fuel business, which includes 28 retail sites and 18 depots," Segal says.

"In addition, this network expansion also supports our recent supply chain investments including the soon to be commissioned $85 million terminal at Pelican Point, South Australia."

Scott Group of Companies Chairman Tony Johnson says that "after many decades of service to customers, it was the right new direction for this part of the business to take".

"The decision was made ultimately to ensure the business continues to grow, prosper and maintain the safe and reliable supply of quality fuel that the community and region expects," Johnson says.

"The company and the Scott family, in particular, are very grateful for the many years of loyal service provided by the staff and for the loyalty shown by customers.

"We know that Caltex holds the same commitment to servicing and supporting customers and the regional communities it operates within. Under Caltex’s stewardship, the fuel business will continue to further develop and grow.

"We are confident that this is a good deal for customers, who can rely on Caltex to maintain the safe and reliable delivery of quality fuel.

"Our customers will also benefit from the national expertise that Caltex brings to meeting their individual needs."

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