EG to sell 63 American stores

Blackburn-based EG Group has agreed a deal to sell 63 of its stores in Kentucky and Tennessee.

It is the latest move by EG to help repay its debt and to reduce its net leverage ratio, which was higher than five times earlier in the year.

The stores being sold currently operate under the Minit Mart and Certified Oil banners and are operated by the EG America subsidiary.

They have been acquired by NASDAQ-listed Casey’s General Stores who said they intend to retain all the store's employees.

The deal is expected to close later this year, subject to customary regulatory approvals.

Zuber Issa, co-founder and co-CEO of EG Group, said: “EG Group is pleased to have found a new home for some of our Certified Oil and Minit Mart portfolio. This divestment will enable both parties to execute their strategic plans, respectively.

"For EG Group, this divestment also represents another important step in executing our deleveraging strategy."

Darren Rebelez, president and chief executive officer at Casey’s, said: “One of the key pillars in our strategic plan is to accelerate our store growth over the next three years and bring Casey’s to more communities.

"This opportunity is an excellent strategic fit as we look to add locations in Kentucky and Tennessee, which are both within our existing distribution footprint."