Contract to acquire a business interest signed
Petrol d.d., Ljubljana is announcing that a contract to acquire a 100-percent interest in the company CRODUX DERIVATI DVA d.o.o. was signed on 12 January 2021 with the seller, Mr Ivan Čermak. The transaction will be completed following the fulfilment of suspensive conditions, which include obtaining approvals from the relevant competition authorities.
As a result of taking over CRODUX DERIVATI DVA d.o.o., the Petrol Group will acquire 91 service stations. With over 200 points of sale, the market share of the Petrol Group in Croatia will increase from 13 to 23 percent. In the region of SE Europe, the Group will thus operate 601 points of sale. The acquisition will enable Petrol to establish itself in certain key parts of Croatia, where its presence has been weaker or inexistent so far in terms of points of sale. The volume of operations in Croatia will allow for the successful business model, as established in Slovenia, to be transferred also to this market. We further expect that significant transfer of knowledge and good practices will take place between the Petrol Group and CRODUX DERIVATI DVA d.o.o. in both directions.
The core business activity of CRODUX DERIVATI DVA d.o.o. comprises import, storage, retail sale and wholesale of petroleum products in the Republic of Croatia. It has more than 1,150 employees and operates 91 service stations. In 2019, the company generated HRK 5,637 million or EUR 760 million in sales revenue, with its net profit amounting to HRK 142.9 million or EUR 19.3 million. The company's 2019 EBITDA totalled HRK 316.5 million or EUR 42.7 million. In Croatia, CRODUX DERIVATI DVA d.o.o. is recognised as a reliable business partner and supplier of high-quality motor fuels as well as a seller offering a wide range of merchandise, and hospitality and other services.
There is still potential for the segment of selling petroleum products and merchandise, which accounts for the largest part of the Petrol Group's EBITDA, to grow in the coming years, especially in the wider region of SE Europe. The acquisition of CRODUX DERIVATI DVA d.o.o. is consistent with the existing strategy as well as with the basis for developing a new Petrol Group strategy and the expansion plans of Petrol d.d., Ljubljana. The decision was taken also in the light of the fact that the Croatian market is closest to the Slovene market in terms of economic development, maturity of the petroleum product market, purchasing power and cultural characteristics. The acquisition of CRODUX DERIVATI DVA d.o.o. is the largest transaction of Petrol d.d., Ljubljana in the past 10 years and represents the most significant one-time increase in the number of points of sale in the Group's history.
By acquiring CRODUX DERIVATI DVA d.o.o., Petrol d.d., Ljubljana is stepping up its role as an important element in increasing energy independence, energy efficiency, CO savings, the share of renewable energy sources and sustainable mobility in the region. That is why Petrol develops the most advanced fuels with fewer emissions, provides for environmentally friendly mobility, co-creates energy-efficient cities, businesses and homes, and increases the share of renewable energy sources.
Green recovery of the European economy in the aftermath of the coronavirus crisis is also a requirement of the European Commission, and Petrol will continue to follow these guidelines, further pursuing its path towards becoming a low carbon company. Development and innovative solutions require solid, stable foundations, and the acquisition of CRODUX DERIVATI DVA d.o.o. helps to ensure this.