Euro Garages Group to Acquire 762 New sites in US for $2.15 Billion
Euro Garages Group, the Blackburn based chain of filling stations, has entered a deal with Kroger to acquire 762 sites in the US from the later for a whopping $2.15 billion. Kroger’s convenience store business is spread across 18 US states and also includes 66 franchise operations. The stores have a workforce of more than 11,000 employees and function under the names Loaf ‘N Jug, Tom Thumb, Quik Stop, Kwik Shop and Turkey Hill. In 2016, Korger’s convenience stores made revenues of over 2.85 billion pounds, this included sale of 1.2 billion gallons of fuel. As part of the deal, EG Group will setup its headquarters in Cincinnati and continue to run stores under its own name. Currently, the Blackburn based group manages and owns nearly 2,600 sites across France, UK, Netherlands, Luxembourg, Italy and Belgium. It employees more than 12,500 people across retail brands such as BP, Shell, Louis Delhaize, Burger King, KFC, Pomme de Pain, Subway and ESSO.
In 2017, EG Group secured nearly 1,000 petrol forecourt assets in Germany from Esso. With the addition of Kroger’s convenience stores, the group will operate and own approximately 4,400 sites in the Europe and United States. EG Group’s founder and chief executive, Mohsin Issa said that EG Group is extremely excited to enter the US market. He said that EG wants to provide a successful retail offer to customers’ across different states in the US. Issa also said that the company has been successful in European market and it believes that Kroger’s assets will provide a fantastic opportunity to penetrate into the US retail landscape. Issa also said that the company is looking forward to partner with other leading retail brands and provide great offers to customers in the US.
Kroger’s CFO and executive vice president, Mike Schlotman said that the company is very happy to partner with EG Group and Kroger is pleased with the group’s decision to establish its head office in Cincinnati. Meanwhile, Barclays and Morgan Stanley are acting as financial consultants to EG Group.