Eurogarages’ £110m warchest after record year

FAMILY-owned petrol station and retail company Eurogarages is hitting the acquisition trail armed with a £110m warchest.

The Lancashire-based group has agreed a new funding deal with Lloyds Bank Corporate Markets in Manchester. It has also published strong financial results for last financial year with sales topping £300m and ebitda soaring from £9.5m to £12m – up 26%.

Retail turnover – sales from its network of SPAR convenience stores and Starbucks, Subway and Burger King franchises – rose  28% in the 12 months to 31 July, and now accounted for more than £50m of annual revenues. 

Total sales , were up 5% to £300m. Blackburn-based Eurogarages is BP’s largest independent fuel distributor and has a portfolio of 70 freehold-owned sites. 

The new debt facilities, which replace the group’s previous arrangements, will provide substantial additional funding as Eurogarages it steps up its consolidation strategy within the forecourt retailing sector.

Managing director Mohsin Issa, said: “The new funding agreement provides significantly increased financial muscle at a time of unprecedented opportunity in the market, with several oil majors divesting their forecourt estates and convenience retailing experiencing strong growth.

“This places the group in a prime position to capitalise on opportunities to further build our size and scale and take the business to the next stage of its development.”

The facilities were led and arranged by Euro Garages’ existing banking partner, Lloyds Bank Corporate Markets, and supported by Handelsbanken.

Andy Bond, the former Asda chief executive and chairman of Euro Garages, said: “Our continued investment in the estate, innovative model and commitment to service is helping us secure the loyalty of new and existing customers, who buy-into the value and quality of our offering.

“This is translating directly into strong sales growth across fuel and retail despite a challenging landscape.
 
“As well as targeting larger acquisitions to expand our estate, this focus remains a key pillar of our growth strategy as we seek to become the UK’s leading forecourt retailer.”
 
Paul Foster, director and deputy head of Large Corporate at Lloyds Bank Corporate Markets led the team at the bank.

Euro Garages was advised by Mark Taylor of Ernst & Young’s capital and debt advisory team and law firm Eversheds.