Mabanaft GMBH & Co. KG has signed a deal to acquire Westfa Energy GMBH, a distributor of liquefied petroleum gas (LPG) in several European countries.
The all-stock purchase from Adeleon Familienholding GMBH is part of Mabanaft’s efforts to consolidate its energy distribution business, Hamburg, Germany-based Mabanaft said in a recent press release.
The acquisition, expected to close in the second quarter of 2024, follows agreements inked by Mabanaft to divest refueling operations that serve refined petroleum products, petrochemicals, heating oil and natural gas.
“WESTFA’s strong position in the downstream LPG market in Germany, the Netherlands, Belgium, France, and Luxembourg is a great complement to Mabanaft’s existing business and will after closing align seamlessly with the company’s long-term growth strategy”, Mabanaft said in the news release.
“By expanding our product range to include LPG, the acquisition will unlock new opportunities for Mabanaft and our customers after closing, making our energy solutions even more diversified, more reliable and increasingly more sustainable; the WESTFA services present a perfect fit to the Mabanaft customer portfolio in the heating and mobility sectors, enhancing its share and value especially in the supply chain for heating solutions”.
In late 2022 Mabanaft reorganized its marketing operations into three units: bulk, energy distribution and retail.
The transaction, which includes the transfer of all Westfa subsidiaries and shareholdings to Mabanaft, is expected to close in the second quarter of 2024.
Mabanaft did not disclose the value of the transaction.
Last month it announced an agreement with Rheinland Energie Team GMBH & Co. KG to offload energy distribution operations from its subsidiary Petronord GMBH & Co. KG.
The transaction involves Petronord’s Lipps Energie GMBH and Uhlenbruck Energie GMBH & Co. KG. Lipps sells refined oil products, petrochemicals and natural gas while Uhlenbruck sells diesel and heating oil.
“After careful consideration of several aspects and criteria in the further implementation of the Mabanaft Group strategy, the decision was taken to sell both companies’ [Lipps and Uhlenbruck] ED [energy distribution] divisions to Rheinland energie team GMBH & Co. KG with effect from 1st December 2023”, Mabanaft said in a media statement November 7.
Before the transaction with Rheinland, a marketing partner of Shell PLC, Mabanaft has integrated Lipps and Uhlenbruck’s automated truck service stations into its retail unit, Mabanaft said.
“We see Rheinland energie team as a solid new owner who will take over the acquired subdivisions with their regional strengths and competent teams, and further develop them in a sustainable and successful manner”, Mabanaft head of ED Lennard Schneider said in a statement at the time.
Mabanft did not disclose the value of the sale.
In October it said it was selling its shares in OIL! Tankstellen GMBH that will see the Prax Group take over about 340 refueling stations in Austria, Denmark, Germany and Switzerland.
“We want to help our customers decarbonize and our best way to do this is by leveraging our core strengths of sourcing, storing, handling and distributing liquid fuels”, Mabanaft chief executive Jonathan Perkins said in a press release October 23. “Therefore, we have made the decision to focus on decarbonizing those sectors where the transition path is most aligned to our core capabilities.
“OIL! Tankstellen’s transition opportunity is clear but leveraging the transition potential requires different levels of resources that are less aligned with Mabanaft’s strategic focus areas”.
Prax chair and chief executive Sanjeev Kumar Soosaipillai said, “The signing of this agreement marks our latest expansion into Continental Europe and signals the Group’s intent to further advance its plans as a leading sustainable and geographically diverse integrated energy business”.
Subject to government approvals, the Mabanaft-Prax transaction is expected to close by the end of this year. Mabanaft did not disclose the value of the transaction.
