Texaco Limited, a UK subsidiary of ChevronTexaco, has confirmed the sale of 118 of its service stations to supermarket chain Somerfield.
Under the terms of the agreement, Somerfield will buy 13 forecourts, of which nine are freehold, and the stock, goodwill, moveable equipment and cash floats for all 118 forecourts, for about £15.3m.
At the same time, Azure Property, a limited liability partnership, jointly run by Palmer Capital Partners and Deutsche Property Asset Management Limited, will acquire the remaining 105 forecourts.
Azure will then lease then these properties to Somerfield and redevelop the sites to the supermarket chain’s requirements as necessary.
Once redeveloped, the portfolio of stores will be fitted out and operated by Somerfield under its Somerfield Essentials format.
The estimated fit-out capital expenditure is expected to be £35m over the next three years.
Texaco will continue to supply fuel to the forecourts, which will retain the Texaco brand.
Somerfield estimates that the turnover attributable to the acquired portfolio over the next 12 months will be approximately £350m.
Somerfield chief executive Steve Back said: ‘We are extremely pleased to have concluded this deal which represents an exciting opportunity for Somerfield to increase its presence in the forecourts convenience sector.”
Shariq Yosufzai, president of global marketing for Chevron Texaco, added: “This is part of our downstream strategy to improve returns by focusing on areas where ChevronTexaco has a competitive supply position and strong brand recognition for its three brands – Chevron, Texaco and Caltex.”
References: EGi News 29/04/05
