Viva Energy, a former oil refiner, has finalised the acquisition of Coles Express for $300 million in a move that aims to push the company further into the grab-and-go shopping market. The acquisition gives Viva control over 700 convenience stores and is a key part of CEO Scott Wyatt’s strategy to reposition the company amid the rising popularity of electric vehicles.
Previously operated as an alliance between Viva and Coles, Coles Express has gradually seen Viva’s influence increase over the years. The acquisition of Coles Express follows Viva’s recent $1.15 billion deal to acquire OTR Group, which operates over 200 retail outlets that generate more than $3 billion in annual revenue.
Viva’s move to diversify its earnings base comes in response to the shift towards electric vehicles, with non-fuel earnings expected to increase from 30% to 50%. The company anticipates that the two acquisitions will add approximately $50 million of growth capex annually.
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