Euro Garages seals major refinancing as revenue nears £1bn

EURO GARAGES, the family-owned petrol station operator, has sealed a £100m plus refinancing deal.

The funding has supported the now-completed acquisition of 48 Esso sites, a deal which the Blackburn company says will push annualised turnover to £1bn.

The refinancing, understood to be worth £150m, was provided by Lloyds Bank, Handelsbanken, Barclays, Allied Irish Bank (AIB) and Pricoa Capital Group.

Euro Garages now has 180 sites and plans to invest £10m in the first year alone in renovating the Esso forecourts.

The service stations will continue to sell Esso fuels but will benefit from Euro Garages’ retail expertise and partnerships with brands like Subway.

Mohsin Issa, Euro Garages managing director, said: “Extending our finance club and securing the new funding package is further endorsement of our business plan.

“We are continuing strategic site acquisitions that deliver new employment opportunities, especially for younger people, and bringing our customer offer to even more people.

“This additional finance enables us to invest to ensure customers at the Esso forecourts benefit from an improved retail experience and our delivery of best-in-class partner brands.”

His brother, chief executive Zuber Issa added: “Last year’s integration of the Esso sites in the North of England and North Wales has been successful and all the forecourts have benefitted from much-needed capital investment and a new, fresher retail offer.

“We now look forward to doing the same with the Midlands and East of England forecourts. As ever, our focus is on surpassing customers’ expectations and developing long-term strategic relationships with our fuel suppliers.”

After the transfer of the 48 sites, Euro Garages now employs more than 3,000 people. Its estate includes 56 on-site Subway outlets, 51 Starbucks Drive-Thrus and 11 Greggs concessions. It aims to have 100 of each outlet and create 1,750 new jobs by the end of 2015.

In the year to July 31, 2013, Euro Garages reported turnover of £439m, up 40% on the previous year.

The company was founded in 2001 by the Issa brothers after they bought one petrol station in Bury.