Circle K parent company Alimentation Couche-Tard has sent a proposal to Cumberland Farms, which formerly did business as EG Group, to acquire the company for between $7.5 billion and $8 billion, according to a report from U.K.-based outlet The Times.
Cumberland Farms had previously signaled plans to pursue a U.S. initial public offering (IPO) in July, initially targeting a valuation of $9 billion.
The Times’ report noted, citing people close to the company, that the company remains committed to a U.S. listing, however it has postponed its plans due to takeover interest.
While a definitive timeline for the potential transaction has not been provided, The Financial Times reported earlier this month that it likely would not happen before 2027.
Cumberland Farms is owned by TDR Capital, which holds a 50% stake, and founding brothers Mohsin Issa and Zuber Issa, which each own 25%. Today, the company operates more than 1,500 locations across the U.S. and operates 10 unique c-store banners.
Earlier this year, in July, Cumberland Farms announced that the founding brothers would step down from the board as the company shifted its organizational strategy — a process that has been ongoing for well over a year.
Beginning in August 2025, the company made a series of large-scale divestments that signaled its intentions for an IPO listing.
Its first move was to divest its Italian business to a consortium of established Italian operators comprised of PAD Multienergy, Vega Carburanti, Toil, Dilella Invest and GIAP. The proceeds from the transaction, which valued the business at an enterprise value of roughly $496 million, were used to further reduce debt.
“We remain relentlessly focused on driving forward EG Group’s growth strategy. This important transaction is fully aligned with this strategy, as we continue to focus on our core markets with the greatest growth potential and deliver on our deleveraging program,” said Russ Colaco at the time, CEO. “We are grateful to our colleagues in Italy for their hard work and dedication, and we wish the business continued success in the future.”
“The acquisition of EG Italia allows us to generate new and key synergies for the development of the fuel stations network with the expansion of the services offered also with a view to the energy transition,” the consortion representatives said in a statement. “The EG network together with the networks of the consortium members, all leaders in their reference territories, will enhance the know-how and skills of the EG Italia organization, heir to the culture of Esso Italiana since 2018.”
Just a few days later, in August 2025, the company announced another divestment — this time in Australia with a A$1.1 billion sale to Ampol.
“This transaction is a significant milestone in our ongoing efforts to streamline EG Group’s global portfolio and sharpen our focus on the markets where we see the largest growth opportunities. I would like to sincerely thank the Australian leadership team and all our colleagues for their significant contributions to the business,” said Colaco at the time. “We remain fully focused on executing our strategy and building a platform for further growth, with our world-class grocery and merchandise, foodservice and fuel retail proposition.”
The company’s next move was the divestment of its French business in March 2026 to Zuber Issa’s EG On The Move by entering into a put option agreement as part of a broader strategic exit from the French market.
“These transactions are a continued demonstration of our commitment to strengthening EG Group’s balance sheet through debt reduction and a disciplined approach to portfolio management,” said Colaco. “By strategically reshaping our European footprint, we are bringing additional focus to our core markets where we have identified the most attractive organic growth opportunities. I would like to thank our employees supporting the French business for their many contributions to EG Group.”
Then in June, Cumberland Farms announced that it had acquired Coen Markets, adding 54 stores across western Pennsylvania, eastern Ohio and northern West Virginia to its network.
According to a March statement from Cumberland, the move reflected the company’s “ongoing strategy to accelerate its growth through targeted, value-driven and complementary investments.”
Stay tuned for more updates from CStore Decisions.
