Phillips 66 to divest 65% interest in Germany, Austria retail marketing business

Phillips 66 (PSX) announced that its subsidiary, Phillips 66 Continental, has entered into a definitive agreement to divest a 65% interest in its Germany and Austria retail marketing business, including JET-branded sites, to a consortium owned by subsidiaries of investment firms Energy Equation Partners and Stonepeak. Phillips 66 will retain a non-operated 35% interest in the business through a newly formed joint venture. The transaction values the Germany and Austria retail marketing business at an enterprise value of approximately EUR 2.5B, representing an implied enterprise value/EBITDA multiple of 9.1x based on expected 2025 EBITDA. Phillips 66 expects to receive pre-tax cash proceeds of approximately EUR 1.5B, after customary purchase price adjustments. The proceeds will be used to support the company’s strategic priorities, including debt reduction and shareholder returns. In connection with the transaction, Phillips 66 will enter into a multi-year agreement to continue to supply the business with products from the Mineraloelraffinerie Oberrhein Refinery. The Germany and Austria retail business includes 970 sites, of which 843 are JET-branded sites. The transaction is expected to close in the second half of 2025, subject to regulatory approvals and other customary conditions.