EG Group announced that it has completed the acquisition of Cumberland Farms.
The integration of the Cumberland Farms assets will take EG Group’s U.S. network to 1,680 gas station and convenience stores across 31 states and retailing more than 2.5 billion gallons of fuel with merchandise sales of more than $3 billion on an annualized basis.
“The Cumberland Farms acquisition represents another significant step in our ambition to build the most compelling, comprehensive and effective convenience customer retail network across the USA,” said Zuber Issa, founder and co-CEO of EG Group. “Cumberland Farms is a well-invested, modern retail network. The Haseotes family have also invested in creating a leading edge warehouse and commissary, established supply and logistics, developed an effective e-commerce and digital platform and created own brand merchandising. All these investments in my opinion, further extend our Omni channel retail capabilities and provide further strategic options for us to consider when developing a robust convenience offer.”
Westborough, Mass.-based Cumberland Farms operates 567 convenience stores in seven northeast states and Florida.
“Being a third generation founding owner and operator, I have an immense amount of gratitude for the Cumberland Farms team and what we have achieved together,” said Ari Haseotes, President and CEO of Cumberland Farms. “This is the right next step for Cumberland Farms and creates an incredible opportunity to expand and grow the existing business into the wider EG Group global network. In that regard, I couldn’t be more pleased with the historical milestone achieved today.”
Founded in 2001 by the Issa family, U.K.-based EG Group is a leading petrol forecourt retail convenience operator who has established partnerships with global brands such as ESSO, BP, Shell, Carrefour, Louis Delhaize, SPAR, Starbucks, Burger King, KFC, Greggs and Subway.
The business has an established pedigree of delivering a world class fuel, convenience and food-to-go offer.
EG Group entered the U.S. market through the initial acquisition of 763 Kroger c-stores in April 2018. EG Group has made a significant commitment to delivering a modern consumer retail offer creating a destination to satisfy multiple consumer missions.
EG Group now operates nearly 5,400 stores, in nine countries with over 35,000 associates.
“Our investment in Cumberland Farms, following our recent acquisitions of Fastrac, Certified Oil and Minit Mart all within a year, demonstrates our commitment to investing in convenience retail in the USA. Cumberland Farms has an extraordinary heritage, one that we want to protect, develop and grow,” said Mohsin Issa, founder and co-CEO of EG Group. “EG Group have a proven track record for successfully integrating convenience retail assets and transforming them into best-in-class customer destinations. I personally look forward to working with Cumberland Farms management team to further explore how we can enhance the convenience retail experience.”
Morgan Stanley, Goldman Sachs, Barclays, PwC and Rothschild & Co are acting as financial advisors to EG. Allen & Overy LLP and Latham & Watkins LLP are acting as legal advisors to EG. RPS Gaiatech are advising the company on environmental risk management.
BofA Merrill Lynch acted as financial advisor and WilmerHale LLP acted as legal advisor to Cumberland Farms on the transaction.
