EG to buy 285 German forecourts for £440m

Blackburn-based EG is to acquire a network of 285 petrol station forecourts in Southern Germany from OMV Deutschland GmbH for €485m.

EG already operates in Germany under the ESSO fuel brand, and this latest acquisition will strengthen its presence in the Bavaria and Baden-Württemberg regions.

Zuber Issa, co-founder and co-CEO of EG Group, said: "The acquisition is an exciting opportunity for us to expand EG Group’s footprint in Germany, a key European market where we see significant growth potential. We look forward to integrating the business into our broader portfolio and further strengthening it through our expertise in Grocery & Merchandise and Foodservice."

Mohsin Issa, co-Founder and co-CEO of EG Group, added: "The OMV team that will join the EG family have done an outstanding job of positioning the portfolio for success. The business delivers fuel throughput of approximately 1 billion litres per annum and has a loyal customer base.

"The supply agreements we will inherit are extremely competitive and alongside the continuation of OMV fuel card acceptance, provide a solid foundation on which we can continue to build."

The purchase price, approximately £440m, is being funded using existing cash reserves and facilities, and will be leverage neutral for EG Group.

EG has also agreed to assume outstanding lease liabilities, implying a total enterprise value of €614m. The transaction is expected to close in 2021, subject to regulatory approvals.

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