EG Group

EG Group is a British retailer based in Blackburn which operates petrol stations and fast food outlets in Europe, the United States and Australia. The group was created through the combination of Euro Garages and EFR Group in November 2016. At the end of 2019, the business reported it operates 5,866 sites across ten countries, and has revenues exceeding €20 billion, with a pre-tax loss of £82 million.[1]

EG Group
TypePrivate
Founded2001
FounderZuber Issa
Mohsin Issa
HeadquartersWaterside,
Blackburn
,
United Kingdom
Area served
United Kingdom, Germany, France, Belgium, Netherlands, Luxembourg, Italy, United States of America, Australia, Republic of Ireland
Key people
Zuber Issa (co CEO)
Mohsin Issa (co CEO)
Michael Hughes (CFO)
Imraan Patel (CLO)
Revenue€20,018m (2019)
-£82 million (pre tax) (2019)
OwnerTDR Capital (50%)
Zuber Issa (25%)
Mohsin Issa (25%)
Number of employees
44,000 (2019)
ParentEG Midco Limited
DivisionsEG Shared Services, EG Fuel, EG Retail
Websiteeurogarages.com

Overview

EG Group sells Esso, BP, Shell and Texaco branded fuel, and operates third party retail brands in its back court operations, such as KFC, Spar, Carrefour, Louis Delhaize, Starbucks, Greggs, Burger King and Subway.

History

Euro Garages was co founded by brothers Mohsin Issa and Zuber Issa in 2001, who expanded the business from a single site (at a cost of £150,000) in Bury, Greater Manchester[2] and had grown to circa 340 sites in the UK. The growth co-incided with oil companies selling off their consumer petrol station assets to focus on their core production and refining business.[3] In October 2015, the private equity firm TDR Capital acquired a stake in the company.[4] In October 2016, Euro Garages acquired the Dutch headquartered European Forecourt Retail Group (founded in 2007, and was the European energy retail and marketing arm of Delek Group, before being acquired by TDR Capital in August 2014) from TDR Capital to form the Intervias Group, later renamed the EG Group. As a consequence of these transactions, TDR Capital now owns 50% of the enlarged group, with Zuber Issa owning 25% and Mohsin Issa the remaining 25%. In 2020, EG Group announced that they were opening 150 American Bakery outlets under a partnership with Cinnabon.[5] [6]

The combination of EG and EFR sought to create a scaled and diversified pan European platform that shares best practices and economizes on common shared services. The business is headquartered in Blackburn, United Kingdom, and has completed construction of a new global headquarters building, also in Blackburn.[7][8] It remains one of the largest privately owned businesses in the United Kingdom.[9]

Major acquisitions
Former Loaf 'N Jug now a Kroger's Smith's Express in Gillette, Wyoming[10]

In 2017, it bought 77 Little Chef roadside restaurants.

In November 2017, the business secured approximately 1,000 forecourt assets from Esso in Germany, which were transferred and integrated into the existing EG network in October 2018.[11]

In 5 February 2018, EG Group announced that it will purchase nearly eight hundred Kroger convenience stores for $2.15 billion.[12] Later that month, EG Group announced that it had completed the acquisition of circa 1,200 sites in Italy from Esso.[13] In April 2018, EG Group completed the acquisition of a portfolio of 97 sites in the Netherlands to supplement is existing network in the country.[14] On 9 November, 2018, Australian retailer Woolworths announced to the Australian Securities Exchange it had entered into a binding agreement to sell its 540 fuel convenience sites to EG Group for AUD $1.72b,[15] and in December 2018, EG completed its acquisition of 225 sites of Minit Mart from Travel Centers of America LLC for upwards of US$330m.[16]

In July 2019, EG completed its acquisition of fifty four Fastrac branded sites in the United States,[17] and announced a deal to acquire sixty nine sites operated by Certified Oil, also in the United States.[18] On July 31, 2019, EG Group announced having entered a binding agreement to purchase Cumberland Farms. [19][20][21] The completion of the sale ended eight decades of family ownership of the chain.

In March 2020, EG became KFC's largest franchisee in Europe through the acquisition of 145 KFC outlets in the UK & Ireland.[22]

In October 2020, EG’s owners won a deal to buy the supermarket chain Asda from Walmart for £6.8 billion bringing it back into British hands after more than 20 years.[23]

In November 2020, EG Group entered into a binding agreement for the acquisition of 18 locations of Schrader Oil in Fort Collins, Colorado.[24]

EG Group's acquisitions have been largely funded by debt, with a net debt of over £7.3 billion at the end of 2019.[25]

References
  1. "EG Group Annual Report and Financial Statements 2019" (PDF).
  2. McCall, Alastair; Watts, Robert (7 May 2017). "High-octane rise of brothers' firm shows family value". The Sunday Times. p. 3.
  3. Mustoe, Howard (2020-10-02). "Who are Asda's new owners the Issa brothers?". BBC News. Retrieved 2020-10-03.
  4. Begum, Shelina (20 October 2015). "TDR Capital takes a bite into Euro Garages for £1.3bn". Manchester Evening News. Retrieved 7 May 2017.
  5. "EG Group to Open 150 Cinnabon® Bakeries Across the UK Under New Master Licensee Deal". Euro Garages. 2020-11-30. Retrieved 2020-12-22.
  6. Gilbert2020-11-30T12:00:00+00:00, Helen. "Cinnabon to open 150 sites in the UK". British Baker. Retrieved 2020-12-22.
  7. Bounds, Andrew (20 January 2015). "Convenience shopping boosts Euro Garages". Financial Times. Retrieved 7 May 2017.
  8. "Euro Garages wins approval for new HQ - Forecourt Trader". forecourttrader.co.uk. Retrieved 2018-04-11.
  9. "Euro Garages ranks as UK's sixth biggest private company - Lancashire Business View". Lancashire Business View. 2017-06-30. Retrieved 2018-05-11.
  10. Truchot, Jeff (2018-03-29). "Loaf 'N Jug stores changing hands". Wyoming Business Report. Retrieved 2018-11-02.
  11. "ExxonMobil and EG Group Enter into New Partnership for German Esso Stations". EG Group. 2017-11-29. Retrieved 2018-04-11.
  12. CNBC (2018-02-05). "Kroger to sell its convenience stores to UK's EG Group for $2.15 billion". CNBC. Retrieved 2018-02-07.
  13. "EG Group completes on 1,200 Esso sites in Italy - Forecourt Trader". forecourttrader.co.uk. Retrieved 2018-04-11.
  14. "Nieuws | NRGValue". NRGValue (in Dutch). Retrieved 2018-05-11.
  15. Hatch, Patrick (9 November 2018). "Woolworths offloads servos to British group EG for $1.7 billion". Fairfax Media. The Sydney Morning Herald. Retrieved 9 November 2018.
  16. Dec. 07, Greg Lindenberg on; 2018. "TravelCenters of America Completes Minit Mart Sale". CSP Daily News. Retrieved 2019-02-04.CS1 maint: numeric names: authors list (link)
  17. Jul. 02, Greg Lindenberg on; 2019. "EG Group Completes Fastrac Acquisition". CSP Daily News. Retrieved 2019-07-19.CS1 maint: numeric names: authors list (link)
  18. May 13, Greg Lindenberg on; 2019. "EG Group to Acquire Certified Oil Business". CSP Daily News. Retrieved 2019-07-19.CS1 maint: numeric names: authors list (link)
  19. http://www.eurogarages.com/eg-group-to-acquire-cumberland-farms-in-the-usa/
  20. https://www.cspdailynews.com/mergers-acquisitions/eg-group-acquire-cumberland-farms
  21. https://cstoredecisions.com/2019/07/31/uks-eg-group-buys-cumberland-farms-c-store-chain/
  22. "EG Group buys largest KFC franchise operator in UK & Ireland". The Grocer. Retrieved 2020-09-21.
  23. Jordan, Dearbail (2 October 2020). "Asda bought by billionaire Issa brothers in £6.8bn deal". BBC News. Retrieved 2 October 2020.
  24. Lindenberg, Greg (9 November 2020). "EG Group to Acquire Schrader Oil". CSP Daily News. Retrieved 31 December 2020.
  25. Harry Brumpton, Dinesh Nair, and Laura Benitez (9 January 2020). "U.K. Gas-Station Billionaires Weigh Biggest-Ever Deal in Caltex". Bloomberg.CS1 maint: multiple names: authors list (link)
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