Euro Garages and EFR deal details emerge
DETAILS of yesterday’s reported merger deal between forecourt giants Euro Garages and European Forecourt Retail Group have emerged.
The merger has been expected for some time after TDR Capital, which already owned EFR, took a minority stake in Blackburn-based Euro Garages around a year ago in a deal which valued the company at £1.3bn.
The merged group will have gross annual revenues of EUR 6 billion, and around 1,450 locations and 8,500 employees, serving 6 million customers a week through the management and operation of retail brands such as BP, ESSO, Shell, Texaco, Carrefour, Greggs, Louis Delhaize, Starbucks and Subway.
The companies said their combination will mean they are perfectly placed for faster growth, leveraging EFR’s fuel expertise and international experience with Euro Garages’ brand partnership model and consumer retail experience.
A new holding company named Intervias has been set up, with a small corporate office in London and a new combined board , led by group chairman Tony DeNunzio CBE who will make significant investment in people, operations, systems and locations and also be on the look out for further international acquisitions, the group said.
Existing forecourt petrol asset portfolios will be enhanced with the introduction of food-to-go and convenience brand partners, it added.
EFR and Euro Garages will continue to operate under their own names with their current CEOs and senior leadership teams.
Euro Garages co-founder and chief executive Mohsin Issa, said: “We are very excited with this great combination of best-in-class operators, gaining a further commercial insight from the unique fuel expertise of EFR.
“Furthermore, I am very pleased with Tony DeNunzio’s appointment as our new group chairman. We are convinced he is the right person to lead the group; he brings a wealth of retail experience and expertise to drive our future growth plans.”
Tony DeNunzio, chairman of Intervias, said: “I am excited to lead Intervias – the new combination of EFR and Euro Garages. They are both companies with an exceptional performance record. We will play a pivotal role in the further consolidation of the petrol forecourt retail sector. We have an ambitious retail growth strategy and I am proud to play a role in this process as group chairman.”
Funds managed by TDR Capital and the two brothers Mohsin & Zuber Issa, the founders of Euro Garages, will each own 50% of Intervias.
The transaction is subject to regulatory approvals and is expected to be completed no later than November 2016.
