Forecourt group adds to rapidly growing empire with US acquisition

EG Group

Forecourt and garage firm EG Group has added another 54 garages to its fast growing empire.

The Blackburn based business has expanded rapidly over the last 18 years and is now one of the biggest international operators.

It has agreed a deal to acquire 54 Fastrac convenience stores and petrol stations in addition to the firm’s wholesale fuel business for an undisclosed amount.

Fastrac operates in New York State with sites clustered along the 1-90 corridor in the Rochester-Syracuse-Albany region, with over 500 employees.

Jay Erickson, president of EG America, said: “Tom Waddle and his fellow shareholders have built an outstanding portfolio of large, modern facilities run by a team of associates who are connected to the communities they serve.

“We are very impressed by the Fastrac operation, from their unbranded fuel procurement and transportation department to the well-developed signature pizza program offered.

“These stores are highly complementary to EG Group’s existing US operation and we are very fortunate to have Fastrac join our EG America family.”

In April of 2018 EG Group acquired a 762 site convenience store business in the United States from Kroger Co.

As part of the Kroger Deal, EG Group established their North American headquarters in Cincinnati, Ohio.

In December of 2018, EG Group expanded to 988 stores with the acquisition of the Minit Mart portfolio from Travel Centers of America and the opening of a new Turkey Hill location in Pennsylvania.

The Fastrac purchase will take the EG Group to a total of 1,042 stores, operating in 24 states.

Mohsin Issa, founder and co-chief executive, 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 Fastrac portfolio as another 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.”

His brother Zuber Issa added: “For the past 18 years, we have had a vision of becoming a leading gas station/convenience store operator around the world.

“This is another exciting addition to the US portfolio as we continue on our growth journey.

“The Fastrac acquisition, in addition to multiple land purchases made in 2018 for new to industry stores, builds on our foundational network as we bullishly explore further real estate development prospects and more importantly provide growth opportunities in the USA for all our colleagues.

“We all look forward to welcoming the talented colleagues at Fastrac 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.

Matrix Capital was the exclusive advisor for Fastrac Markets.

The EG Group was founded in 2001 by the Issa Family after they bought a garage in north Manchester.

The EG Group currently employs over 30,000 workers in 5,200 sites across Europe, USA and Australia.

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