Carlsquare advised VARO Energy (“VARO”) on the sale of its subsidiary VARO Energy Direct Retail GmbH (“VARO Energy Direct Retail”) to CLASSIC Tankstellen GmbH & Co. KG (“CLASSIC”), a member of the Lühmann Group. This transaction represents a significant step in VARO’s ongoing strategy to streamline its portfolio and focus on growth areas.
VARO is the partner of choice for customers in the energy transition by providing the sustainable and reliable energy solutions that they need to decarbonise. The company’s activities encompass both conventional (Engine 1) and sustainable (Engine 2) energies, VARO is investing $3.5 billion over the 2022-26, with two-thirds committed to sustainable energies. VARO, a private company owned by The Carlyle Group (66.66%) and Vitol (33.33%), is headquartered in Switzerland with a diversified presence in 26 countries.
VARO Energy Direct Retail operates 16 retail stations in northern and western Germany, providing diesel, gasoline, and liquefied petroleum gas (LPG) to both end consumers and commercial customers.
CLASSIC operates 180+ gas stations, mostly in northern Germany though the firm is present in twelve federal states. For more than half a century, it has been possible to refuel at CLASSIC, and today in many locations alternative fuels are available as well as classic fuels such as LPG. CLASSIC is a subsidiary of the Lühmann Group, a leader in the mineral oil sector with 140+ years of heritage. The group remains committed to sustainable practices and strong community involvement.
The sale to Classic is expected to close by year-end, pending regulatory approvals. All employees of VARO Energy Direct Retail will transition to the new owner, ensuring continuity and stability within the business. In addition to acquiring the retail network, Classic and VARO have agreed to continue the current product supply arrangements, extending their partnership in the distribution of both conventional and sustainable fuels.
This transaction completes the divestment of VARO’s German consumer business, following the divestment to Hoyer (in August 2024) of its mineral oil trade business as well as its retail business in southern and eastern Germany – a deal for which Carlsquare also served as sell-side financial advisor. The divestment aligns with VARO’s focus on capital discipline and strategic investments in future growth areas, including sustainable energy initiatives. VARO’s other business activities in Germany, as well as it’s end-consumer business in Benelux and Switzerland, are unaffected by this sale.
Carlsquare acted as the exclusive financial advisor to VARO Energy.
