Euro Garages seals Little Chef deal
Fuel forecourt giant Euro Garages has agreed the purchase of 78 sites from retro roadside favourite Little Chef.
The Blackburn-based company, owned by brothers Mohsin and Zuber Issa, merged with EFR in October to create a €6bn group.
The company has wasted no time in using its newly found and considerable financial clout and has completed the acquisition of two companies from the Kout Food Group, which between them control its 78 roadside sites. The acquisition includes usage rights to the Little Chef and related brands.
The Kuwaiti company bought Little Chef for £15m in 2013 but has struggled to turn around the fortunes of the roadside restaurant chain, which has just the 78 sites remaining from a peak of 450 in 2000.
It is understood that each Little Chef site will be assessed individually, with some sites potentially being rebranded – Euro Garages has partnerships with the like of Starbucks, Subway, Greggs and Burger King.
A spokesperson for Intervias, parent company of Euro Garages, said: “This transaction forms part of our growth plan to acquire and develop strategically-positioned sites, allowing us to bring a portfolio of market-leading brands to consumers and communities across the UK and elsewhere in Europe. It also consolidates Euro Garages’ position as the UK’s leading roadside retail operator.”
Before the EFR merger deal in October, Euro Garages had 338 sites across the country, with just 25% of profits coming from fuel. Its trick has been to offer partnerships with retailers, including Spar and Subway, to allow motorists to grab groceries or a bite to eat at the same time as refuelling their vehicles and last year it started a pilot of Sainsbury’s convenience stores.
Euro Garages’ turnover was £815.6m, with pre-tax profits of £34.8m in the year to July 2015. Fuel accounted for around £674m of turnover, while retail and food sales were £141m.
