The Shahin family has today announced Viva Energy has acquired the OTR Group.
The merger will amalgamate OTR, Smoke Mart & Gift Box (SMGB) and the Wholesale Fuels businesses into Viva Energy’s Convenience & Mobility business. To create a network of over 1,000 convenience retail outlets, including Coles Express Convenience and Liberty Convenience businesses.
The $1.15BN sale will accelerate the roll out of the OTR Group’s national development plans, to make OTR the undisputed leading retail convenience brand in Australia, with plans to further grow the OTR and Quick Service Restaurant offerings across the network.
Yasser Shahin, OTR’s Founder said “the announcement today marks an incredibly exciting time for our company. Expanding OTR’s iconic South Australian brand Australia wide delivers on several core objectives that have underpinned our business since its inception; to see OTR expand nationally.”
Subject to regulatory approvals, the Directors of the Peregrine Group of Companies have agreed to merge the OTR, SMGB and Wholesale Fuels businesses into Viva Energy’s Convenience & Mobility business (viva Energy is the licensee of the Shell Brand in Australia as well as the operator of the 700 store Coles Express Network of Fuel & Convenience sites).
Peregrine Corporation Managing Director Charlie Shahin AO said “The SMGB business will continue to operate under its current leadership and business plan. Viva has a lucrative wholesale business that will undoubtedly create synergies with the merge of SMGB wholesale into the group.”
The transaction involves a combination of cash and shares that will see the Shahin Family become a major shareholder of Viva Energy Australia.
“The OTR Group is one of the most successful and innovative retail convenience and fuel offerings in Australia; I am immensely proud of what the OTR Group has achieved in just thirty years. We are committed to the successful integration of these businesses, and the OTR Group is very excited to be joining one of Australia’s largest retailers.”
At completion of the agreement, the Viva Energy group will have a network of nearly 1,000 convenience stores across Australia, employing more than 12,000 people; with plans to extend the OTR and Quick Service Restaurant offers across the network.
Employment with OTR Group team members and support centre staff have been invited to join Viva Energy on their existing terms and conditions. There will be no immediate changes, and for 6,500 OTR, SMGB and Wholesale Fuels it will be business as usual.
OTR Executive Director, Mr Yasser Shahin will be retained on a fulltime basis by Viva Energy for two years following completion of the sale. During this time Mr Shahin will continue to lead the OTR Group, while supporting the transition of the business, including working closely with Mr Jevan Bouzo, Viva Energy’s CEO of Convenience & Mobility.
Article and images supplied by Glam Adelaide.