Garage forecourts and stores group in double acquisition spree

Blackburn-based petrol station and stores operator EG Group has announced two major acquisition deals in the UK and Ireland, and Australia.

The deals, for undisclosed sums, include the largest KFC franchise in the UK and Ireland from Belfast-based, The Herbert Group, and Oliver’s Real Food, in Australia.

The Herbert Group acquisition is of 146 KFC restaurants and one Pizza Hut store, as well as a development pipeline and a small number of non-trading sites.

Inclusive of this portfolio, EG Group now operates more than 1,500 food-to-go retail concessions across 10 international markets, including the UK, Ireland, France, Belgium, The Netherlands, Luxembourg, Italy, Germany, US and Australia.

This acquisition also sees EG Group bolster its global employee complement by a further 4,000 staff members.

Zuber Issa, founder and co-CEO of EG Group, said: “Securing The Herbert Group portfolio is well aligned to our long-term strategic growth plans and builds on our commitment to grow the EG Group’s presence in the food-to-go retail convenience segment.

“The Herbert Group portfolio is a great strategic addition and complements our expanding operations in the UK and furthermore, now allows us entry into the Irish market.”

He added: “I would also like to take the opportunity to personally thank Michael Herbert and his executive leadership team for their professional commitment, help and support during the transitionary period.

“We are committed to working closely with the KFC brand team to invest in the portfolio we are acquiring, and to open new restaurants. There is already a strong development pipeline for us to work towards developing.”

Paula McKenzie, general manager at KFC UK & Ireland, said: “I’d like to personally thank all of the Herbert Group team for their partnership and contribution to our brand over the last 39 years.

“We’re pleased that EG Group have acquired these restaurants – it shows confidence in investing in KFC and comes at an exciting time for our brand, ff the back of unprecedented sales growth in 2020 so far.

“The acquisition demonstrates EG Group’s ability to be a partner of choice and we’re looking forward to supporting them as they unlock further investment and growth in the years ahead.”

Australian-listed group Oliver’s Real Food Limited was formed 15 years ago and has established a significant market position, with 24 sites in Australia, providing a healthy fast food alternative for consumers on Australia’s major arterial highways.

Oliver’s Real Food is considered to be the world’s first “certified organic fast food chain” and provides its customers with premium quality, “real” food that is fresh, natural, and free from additives and preservatives, seven days a week.”

Zuber Issa said: “EG delivers innovative food and convenience offers to customers internationally and we are committed to bringing market-leading offers to our Australian customers.

“In Oliver’s we see a concept that meets a global trend towards healthy and sustainable eating.”

Mike McMenamin, EG Australia CEO, added: “Oliver’s has developed a strong following in Australia, and has been very well received by our customers in trials at a number of our stores.

“This acquisition presents a great opportunity for us to enter the Australian restaurant market and the potential to enhance our convenience offer across our 500+ store network. We look forward to the Oliver’s team joining the EG Australia family.”

Jason Gunn, Oliver’s founder, director and CEO, said: “This transaction is a huge positive for our customers, our dedicated team, our suppliers and our shareholders.

“We are looking forward to working with the EG Group for this next phase of our journey.”

The transaction is subject to customary terms and conditions, including Oliver’s shareholder approval and court approval.

Completion is expected to occur mid-2020.

Citigroup is acting as financial advisor and Allen & Overy as legal advisor to EG Group.