EG’s US expansion gets into the fast lane
Blackburn-headquartered EG Group’s American expansion plans continue to gather pace with the announcement that it has entered into a binding agreement to acquire Cumberland Farms.
Its latest US acquisition operates approximately 600 convenience retail stores and fuel stations across seven north-east states and Florida and employs around 9,000 people.
Having had no presence in the USA before April last year, the purchase of Cumberland Farms will take the EG Group’s network to a total of nearly 1,700 stores across the country.
It means EG will now operate in 30 states and retail more than 2.5 billion gallons of fuel with merchandise sales of more than US$3 billion on an annualised basis
Zuber Issa, founder and co-chief executive of EG Group said: “It is rare that an asset of this quality becomes available and we are delighted to have been successful in a highly competitive process.
“We look forward to welcoming the talented team at Cumberland Farms into the EG family”.Ari Haseotes, president and chief executive of
Cumberland Farms, added: “We very much look forward to becoming part of the EG family, as it is clear that both Cumberland Farms and EG Group share a common vision for excellence in convenience retailing and commitment to investment in our people.”
The acquisition of Cumberland Farms is a transformative one for our US business.
Mohsin Issa, founder and co-chief executive at EG, added: “The acquisition of Cumberland Farms is a transformative one for our US business.
“It brings us greater scale and a well-established network in locations we do not currently serve that is highly complementary to our existing US store footprint.
“We believe that the Cumberland Farms portfolio comprises some of the very best convenience stores within the USA and we are delighted they will form part of the EG family.”
Founded in 2001 by the Issa Family, EG Group is a leading petrol forecourt retail convenience operator that has built established partnerships with global brands.
The EG Group currently employs over 30,000 people working on around 5,200 sites across Europe, USA and Australia.
The company has committed financing in place to support its latest transaction from a bank group led by Barclays. The transaction is subject to regulatory approval and customary closing conditions.
- For further Lancashire business news, advice and analysis subscribe to Lancashire Business View now from just £2.50 per month. Click here to subscribe now.