EG Group has agreed to sell its remaining U.K. forecourt business and certain standalone foodservice locations to co-founder Zuber Issa, for the price of roughly $290 million.
Once the transaction is completed, Zuber will step down as co-CEO of EG Group, with Mohsin Issa continuing to lead the business as sole CEO. Zuber will retain his existing shareholding in the company and remain on the board as a non-executive director.
“On behalf of the Board of EG Group, I would like to thank Zuber for his incredible leadership, which has been central to building one of the largest and most entrepreneurial private companies in the U.K. EG Group is a U.K. success story on the global stage that has created significant opportunities for people in Blackburn and other local communities in the group’s international markets — and pioneered the foodservice model at the roadside,” said Lord Stuart Rose, chairman of EG Group. “With Mohsin remaining as sole CEO, the business is in the right hands and well-placed for further success. I look forward to continuing to work with Mohsin and Zuber on the board of EG Group as we focus on growing the international business and ensuring EG plays a key role in the energy transition.”
EG Group will use the proceeds from the divestment of its remaining U.K. forecourt business to repay debt, further strengthening its balance sheet following the significant deleveraging and refinancing activity last year.
“We have had an amazing journey together building EG Group over the last 20 years and we look forward to continuing to work closely together as fellow board members and shareholders in EG Group,” the co-founders said in a joint statement. “The company is well positioned for future growth and success, with a strong international portfolio and a growing EV business. We are both — and the wider board — laser-focused on our key growth opportunities.”
The co-CEOs also noted that the company has a capital structure which allows them to take advantage of the “opportunities ahead.”
“Given our shared background in building great businesses, the board and everyone at EG understand Zuber’s desire to return to his entrepreneurial U.K. roots by acquiring the remaining U.K. forecourt business including new-to-industry developments and certain standalone food service concessions — as well as dedicating more time to his family and our charitable activities,” the statement continued.
Additionally, EG Group has appointed Russel Colaco as its global chief financial officer (CFO), as former group CFO Michael Bradley steps down from his role.
“We want to sincerely thank Michael Bradley for his contributions as group CFO and wish him the very best for the future,” the co-CEOs concluded.
The transaction is expected to complete in the second half of 2024.
As CEO of EG Group, Mohsin will continue to lead the company, working closely with the business’ highly experienced senior management team, the company noted.
EG Group’s Long Journey
Zuber and Mohsin co-founded EG Group in 2001 and under their leadership, the business has grown from a single site in the north of England to a global company with more than 5,500 locations.
With a diversified portfolio across three continents — North America, Europe and Australia — EG Group continues to progress its proven strategy to roll out foodservice, and grocery and merchandise to create multi-purpose convenience retail sites across its international estate.
EG Group is the third-largest independent convenience retail chain globally, the fifth in the U.S. and second in Continental Europe and Australia. The business will maintain a presence in the U.K. through Cooplands, its wholly-owned bakery business, the group’s rapidly growing charging business, evpoint and its Starbucks franchise business.
EG Group will continue to deliver its strategy to deploy emerging fuels and EV chargers across the existing site network, as well as third-party locations.
