Rubis has signed an agreement to acquire Eres, one of the main independent specialists in the supply, transport and logistics of bitumen in Western Africa.
With the support of a strong logistic infrastructure including import terminals in Senegal, Togo, and Nigeria, the group is a leader in the sub-region. The company controls the whole logistics and supply chain from the refinery in-take, shipping, sea-connected import terminals to inland depot till truck delivery to the final users on the work site.
The acquisition is in line with Rubis’s strategy; a niche product, marketed in import markets where infrastructure is essential to maintain long run competitive advantage and to service to international road contractors.
In 2014, total sales revenues of Eres reached an estimated US$550M with a proforma profit generation of around 8 percent of sales. The company has marketed 400,000 tons of bitumen and emulsion in 2014 in addition to fuels in Western Africa. Eres has built a solid business base in the region helped by its expertise and its integrated logistics, including vessels, terminals and road transport.
The transaction includes the immediate purchase of 75 percent of the shares followed by a scheduled earn out payment and the remaining 25 percent shares after three years.