Blackburn forecourt owner splashes out £237m on latest US acquisition
Blackburn based EG Group has splashed out £237m on a chain of American convenience stores and petrol stations.
The Lancashire firm is one the fastest growing firms in the North West and the company’s founders are now amongst the richest businessmen in the UK.
The latest deal has seen EG Group acquire 225 Minit Mart branded convenience retail stores and gas stations and some other related assets Minit Mart from TravelCenters of America.
The purchase price for the acquisition, before working capital adjustments, is $305m with the Minit Mart business having recorded an audited full year EBITDA of $43m.
The deal just comes just months after the company, which was founded by brothers Zuber and Mohsin Issa, struck a deal to acquire 762 sites in the US from Kroger for £1.53bn.
Minit Mart operates across nine Midwest US states that are highly complementary to EG Group’s existing US operation.
The acquired business employs almost 2,500 employees and generated revenues of $720m last year.
As part of the Kroger Deal, EG Group established their North American headquarters in Cincinnati, Ohio. With the inclusion of the Minit Mart portfolio, EG Group will own and operate 1,000 sites in the US.
EG Group co-CEOs Mohsin, left, and Zuber Issa
Mohsin Issa, founder and chief executive of EG Group, said: “We have a firm commitment to growing our presence in the USA, the world’s largest convenience market and are extremely pleased to have signed definitive transaction documents to acquire the Minit Mart network from TravelCenters.
“The Minit Mart portfolio will be a strong addition to our business.
“Our group’s ability to maintain consistency in brand standards along with delivering the right customer experience have made EG Group a partner of choice.
“Our proven track record of developing similar portfolios, creating career opportunities and being able to leverage our relationships with leading retail brands to meet customer needs and align with market trends is second to none.”
Zuber Issa added: “For the past 17 years, we have had a vision of becoming a leading gas station/convenience store operator around the world.
“This is another exciting international milestone on our growth journey. The Minit Mart acquisition will underpin a more sustainable network, allow us to explore further real estate development prospects and more importantly provide further growth opportunities in the USA for all our colleagues.
“We all look forward to welcoming the talented people at Minit Mart into the EG Group family and will work together to provide customers with an even better retail experience by expanding our convenience store proposition.”
The transaction is subject to regulatory approval and customary closing conditions.
Legal advisors to EG Group are Eversheds Sutherland LLP (M&A) and Kirkland & Ellis LLP (Banking & Finance). Barclays Bank plc have acted as M&A advisers to EG Group and have also underwritten the debt financing for the deal.
EG Group is now the world’s leading independent fuel station and convenience retailer, with a diversified portfolio of sites across eight countries in Europe and North America.
By the end of 2018, the business will operate 5,000 sites, employing more than 25,000 people and generating pro-forma annualised revenues in excess of £15.5bn.
The firm was founded in 2001 from a single site in Bury.
In October 2015, the private equity firm TDR Capital acquired a stake in the company.
The business is headquartered in Blackburn and has announced plans to construct a new global headquarters in the town.
It remains one of the largest privately owned businesses in the UK.
