Colruyt Group completes the sale of DATS 24 to Virya Energy
HALLE, 2 JUNE 2023 - Colruyt Group and Virya Energy have reached an agreement to fully integrate DATS 24 into the energy holding company Virya Energy. In light of the rapid greening of the energy market, Virya Energy will boost its clout by joining forces and expertise with DATS 24. This fits with Colruyt Group's long-term strategy, one of the pillars of which is 'Energy', which focuses on green, renewable and ‘fit-for -purpose’ energy.
Joining forces and expertise
On 25 October 2022, Colruyt Group announced its intention to bring together the energy activities of DATS 24 and Virya Energy. This transaction has been finalised.
Virya Energy and DATS 24 complement each other across the entire energy value chain; from development, financing, and construction of energy production projects, to their operation and maintenance, to energy supply and service offering. Awareness regarding the energy transition has increased significantly among consumers, families and companies. In view of this rapidly changing energy market and increasing attention to sustainable energy, both parties will be able to combine their energy expertise and reinforce one another throughout the entire energy value chain.
Colruyt Group aims to provide its customers with a sustainable offering in four areas of expertise, of which 'Energy' is one. The bundling of all energy activities into Virya Energy thus also fits into that context. DATS 24 will continue to be part of Colruyt Group's Xtra app ecosystem.
The transaction
The transaction is based on an enterprise value of EUR 56 million, plus a potential earn-out consideration of up to EUR 11 million. Arm's length principles were applied for the valuation. Following this transaction, Colruyt Group's cash flow statement is expected to include a cash inflow of approximately the same order of magnitude (inter alia after settlement of intragroup positions and net of cash and cash equivalents disposed of, which in total are estimated at approximately EUR 25 million – based on preliminary figures per 31 March 2023). Furthermore, this transaction is expected to result in a limited one-off impact on the net result of the financial year 2023/24. Both are subject to the customary post-closing purchase price adjustments. Additionally, certain assets have been transferred from Colruyt Group for a total of EUR 6 million. Arm's length principles were applied for the valuation.
As of June 2023, DATS 24 will no longer be fully consolidated by Colruyt Group, but by Virya Energy. This means that as of June 2023, the results of DATS 24 will be accounted for in Colruyt Group's consolidated figures via Virya Energy using the equity method.
The fuel distribution activities in France are inseparably connected to, and therefore an integral part of, the stores in France and are not included in the above transaction. The necessary measures have been taken in view of the conflict of interest rules.