Caltex Australia Limited has entered into an agreement to purchase Milemaker Petroleum’s retail fuel business assets in Victoria for AUD95 million (USD72.8 million).

The final consideration will be adjusted for working capital and other ancillary items at completion.

The transaction will see Caltex acquire the business assets and take over operation of 46 service stations in Victoria, with the majority located in and around Melbourne. Caltex will also enter into long-term leases for each of the sites with options up to 30 years.

“Milemaker, a successful Australian business built and owned by Nick Andrianakos, has been a Caltex-branded reseller and customer of Caltex for over 32 years. I am pleased that this high-quality business will remain Australian-owned and managed, as Caltex is the only independent transport fuel and convenience company listed on the Australian Securities Exchange,” said Julian Segal, Caltex Australia’s managing director and CEO.

Caltex Australia is Australia’s leading transport fuel supplier, with a vast network of approximately 1,900 company-owned, franchised or affiliated sites.

The acquisition will complement Caltex’s existing network in Victoria and provide a stronger platform from which to provide new and improved customer offerings in the convenience marketplace.

The purchase price will be funded from existing facilities and is expected to be earnings per share accretive in the first full year of ownership. Post-transaction, Caltex Australia’s strong balance sheet will still allow Caltex to target additional growth opportunities that meet its disciplined capital return criteria and commitment to delivering top quartile total shareholder returns.

Completion of the transaction is scheduled for 31 January 2017 allowing time for regulatory review and execution of various operational agreements.