EG Group in deal to acquire US convenience stores and fuel stations
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The new owners of Leeds-based Asda, Blackburn brothers Zuber and Mohsin Issa, have announced the latest takeover deal for their EG Group.
The garage forecourts retailer has entered into a binding agreement for the acquisition of Schrader Oil in the United States, for an undisclosed sum.
The Schrader family set up the business in 1937, developing over four generations by responding to evolving customer demands and providing the highest levels of service.
Schrader currently operates 18 convenience retail stores and fuel stations in Northern Colorado and employs 150 people.
EG Group already operates a network of 88 Loaf ‘N Jug convenience stores in Colorado, employing nearly 1,500 staff.
It says the combination of the two networks is an exciting opportunity to invest in the locations and further improve the customer offer.
The Schrader Oil sites will be rebranded to Loaf ‘N Jug to provide customers with a consistent service and offer across the network in Colorado.
Mohsin Issa said: “We have a firm commitment to continue growing our presence in the USA, the world’s largest convenience market.
“We are extremely pleased to have reached an agreement to acquire Schrader Oil as another strong network addition to our existing business.”
Steve Schrader, president of Schrader Oil Company, said: “We are thrilled to be passing the baton to a highly successful and growth-oriented company in EG.
“We believe they have the capability to take our success and continue to support our community for many years to come. We believe we have found the best fit for our family, our employees, and our community.”
In the US, EG Group owns and operates Cumberland Farms, Certified Oil, Fastrac, Kwik Shop, Loaf ‘N Jug, Minit Mart, Quik Stop, Tom Thumb, and Turkey Hill.
The purchase of Schrader Oil will take EG Group’s network to more than 1,700 stores across the country, operating in 33 states and retailing in excess of 2.5 billion gallons of fuel with merchandise sales of more than $3bn on an annualized basis.
The terms of the transaction were not disclosed, but the deal is being funded using existing cash reserves and is not material to EG Group’s balance sheet.
The transaction is expected to close by the end of 2020, subject to customary regulatory approvals. All site and field-based employees of Schrader will transfer to EG Group.
Founded in 2001 by the Issa family, EG Group is a leading petrol forecourt retail convenience operator which has established partnerships with global brands.
Last month EG Group completed a £6.8bn to buy the Asda supermarket chain from US group Walmart, brining it back into British ownership for the first time in 21 years.
It currently employs more than 55,000 colleagues working in around 6,000 sites across Europe, USA and Australia.