EG Group completes Cumberland Farms acquisition
Blackburn-based petrol station and stores operator EG Group has completed the £1bn+ acquisition of US business Cumberland Farms.
The acquisition makes EG the fifth-largest independent convenience store operator in the US.
Based out of Westborough in Massachusetts, Cumberland Farms operates 567 convenience stores in seven North East states and Florida.
The integration of the Cumberland Farms assets will take EG Group’s USA network to 1,680 petrol station and convenience stores across 31 states – retailing more than 2.5 billion gallons of fuel, with merchandise sales of more than $3bn on an annualised basis.
Zuber Issa, co-founder and Co-chief executive of EG Group, said: “The Cumberland Farms acquisition represents another significant step in our ambition to build the most compelling, comprehensive and effective convenience customer retail network across the USA.
“Cumberland Farms is a well-invested, modern retail network. The Haseotes family have also invested in creating a leading-edge warehouse and commissary, established supply and logistics, developed an effective e-commerce and digital platform and created own brand merchandising.
“All these investments, in my opinion, further extend our omni-channel retail capabilities and provide further strategic options for us to consider when developing a robust convenience offer.”
On completion of the sale and transfer, Ari Haseotes, president and CEO of Cumberland Farms, said: “Being a third generation founding owner and operator, I have an immense amount of gratitude for the Cumberland Farms team and what we have achieved together.
“This is the right next step for Cumberland Farms and creates an incredible opportunity to expand and grow the existing business into the wider EG Group global network. In that regard, I couldn’t be more pleased with the historical milestone achieved today.”
Mohsin Issa, co-founder and Co-chief executive of EG Group, said: “Our investment in Cumberland Farms, following our recent acquisitions of Fastrac, Certified Oil and Minit Mart all within a year, demonstrates our commitment to investing in convenience retail in the USA.
“Cumberland Farms has an extraordinary heritage, one that we want to protect, develop and grow.
“EG Group have a proven track record for successfully integrating convenience retail assets and transforming them into best-in-class customer destinations. I personally look forward to working with Cumberland Farms management team to further explore how we can enhance the convenience retail experience.”
Morgan Stanley, Goldman Sachs, Barclays, PwC and Rothschild & Co are acting as financial advisors to EG.
Allen & Overy and Latham & Watkins are acting as legal advisors to EG. RPS Gaiatech are advising the company on environmental risk management.
BofA Merrill Lynch acted as financial advisor and WilmerHale acted as legal advisor to Cumberland Farms on the transaction.
EG Group was last month reportedly considering a flotation next year which could value the business at more than £10bn.
A listing could give the founders, brothers Mohsin and Zuber Issa, a stake worth around £5bn.
