Unimot Group has finalised the acquisition of Lotos Terminale

Date of publication: 13.04.23

On 7 April 2023, Unimot Investments, a company from Unimot Group, entered into a final agreement with PKN Orlen to transfer 100 percent of shares in the company Lotos Terminale, thus Lotos Terminale, Uni-Bitumen, Lotos Infrastruktura and RCEkoenergia join Unimot Group. The agreement was entered into as all the conditions precedent were fulfilled.

The acquisition of Lotos Terminale, a part of which are all other acquired companies, is another important stage in the successive development and strengthening of Unimot Group as the largest independent operator on the fuel market in Poland. Our business strategy for 2018-2023 outlines the need to diversify revenue sources and now we are taking advantage of the opportunity that has appeared on the market to expand the scale and areas of business activity. All the acquired companies will continue their current activities and will additionally benefit from the resources, experience and business relations of our Group, in the international environment as well. Professional management and about 400 experienced employees are transferred to Unimot Group, which is a milestone for our further development – says Adam Sikorski, President of the Management Board of Unimot.

The transaction will make Unimot Group the third player on the fuel storage market and the second player on the asphalt sales market.

In the near future, the names of the companies will be changed as follows: Lotos Terminale to Unimot Terminale, Lotos Infrastruktura to Unimot Infrastruktura and Uni-Bitumen to Unimot Bitumen. RCEkoenergia will remain its current business name.

Under the entered agreement, Unimot Investments is obliged to pay PKN Orlen a part of the agreed sale price for shares of Lotos Terminale S.A. and to refinance the liabilities of Lotos Terminale S.A. towards the bank in the total amount of PLN 366.4 million.

The remaining part of the sale price, including the part resulting from the established earn-out mechanism, as well as the return on investment expenditures connected with the implementation of the investment in the fuel terminal in Szczecin, will be carried out at later dates agreed between the parties. According to the best knowledge of the Management Board of Unimot and considering internal analyses, the total estimated involvement of Unimot Group in the transaction, as of entering into the agreement, may amount to approx. PLN 450 million.

The sale price will be paid from the own contribution made to Unimot Investments by Unimot Group in
the amount of PLN 118.6 million and the use of a part of the loan granted to Unimot Investments by
a consortium of banks.

Commentary by Adam Sikorski, President of the Management Board of Unimot, on the acquisition of Lotos Terminale.