OTR GOES NATIONAL IN DEAL WITH VIVA ENERGY
05 April 2023: The Peregrine Group have entered into a binding agreement with one of Australia’s leading energy companies, ASX listed Viva Energy Group Limited, to merge OTR, SMGB and its Wholesale Fuels businesses into Viva Energy’s growing Convenience & Mobility business.
This exciting opportunity accelerates the transformation of OTR’s Convenience business and will make OTR one of Australia’s leading retail brands.
Viva Energy advised the ASX of a transaction to merge the OTR Group with Viva Energy’s recently announced acquisition of the Coles Express convenience business in a transaction involving a combination of cash and shares that will see the Shahin Family become a major shareholder of Viva Energy Group Limited.
Over the next 3 years the combined group will target to have a network of nearly 1,000 convenience stores, and more than 250 specialty stores operating under the SMGB brand across Australia, employing more than 12,000 people with plans to grow further as the OTR offer is expanded across the existing Shell Coles Express network.
Approximately 6,500 OTR, SMGB and Wholesale Fuels team members and support staff will be invited to join Viva Energy on their current terms and conditions, with the OTR Site Support Office in Adelaide set to accommodate the fully merged Viva Energy Convenience & Mobility business.
OTR Founder, Mr Yasser Shahin, said “This announcement today marks an incredibly exciting time for our company, delivering on several core objectives; to see OTR become national, to be the leading convenience brand in Australia and to remain true to our roots and based in Adelaide.”
The coming together of arguably one of Australia’s best retail networks with one of Australia’s leading convenience offerings has enormous industrial logic. I and the entire team are completely committed to the successful integration of these businesses. The Shahin family is committed to continuing to see Adelaide as the home of OTR and Viva Energy have provided for the realisation of a larger, enhanced OTR to continue to be headquartered here.”
The SMGB business will continue to operate under its current leadership and business plan, realising synergies and opportunities at a faster pace than those achievable through organic growth alone.
OTR’s Founder, and current Executive Director, Mr Yasser Shahin, will be retained on a fulltime basis by Viva Energy following completion of the transaction. Until that time, he will continue to lead the existing OTR group and work to support a successful integration of the businesses.
Viva Energy CEO and Managing Director, Scott Wyatt, said “We intend to take the OTR offer and brand nationally by implementing this progressively across the existing Coles Express network and within all stores that get opened over the coming years. OTR will be our flagship convenience brand, replacing Coles Express over time, and very much representing the future of our convenience business.”
Over the past three decades the Shahin family has built OTR into one of the most successful integrated convenience and fuel offerings in Australia. We are excited about the opportunity to take this proud South Australian business nationally and are pleased to have Yasser Shahin work with us to continue this journey.”
Subject to regulatory approval, completion of the transaction is expected to occur in CY2023, the business will continue to operate as it always has through the intervening period.
Further illustrating Viva Energy’s long term commitment to South Australia, The Bend Motorsport Park (The Bend) has announced that from 1 July 2023, Viva Energy will commence a 10-year naming rights sponsorship of The Bend.
The Shahin family’s ownership of the Peregrine Property, Construction & Development (PCI) and Motorsport (The Bend and Mallala) divisions remains unchanged.
OTR is proudly Australian-owned and operated. OTR is part of the Peregrine Corporation group, South Australia’s largest private employer, employing more than 6,500 staff. OTR is the state’s most innovative and leading convenience retailer with more than 180 stores across metropolitan and regional South Australia, metropolitan and regional Victoria, Tasmania, Northern Territory, and Western Australia.
Please refer to OTR in your media coverage; ‘On the Run’ is an obsolete trading name. Thank you.
About Viva Energy
Viva Energy (ASX: VEA) is one of Australia’s leading energy companies and supplies approximately a quarter of the country’s liquid fuel requirements. It is the exclusive supplier of high-quality Shell fuels and lubricants in Australia through an extensive network of over 1,330 service stations across the country.
Viva Energy owns and operates the strategically located Geelong Refinery in Victoria, and operates bulk fuels, aviation, bitumen, marine, chemicals and lubricants businesses supported by more than 20 terminals and over 50 airports and airfields across the country.